Things You Should Know as a Landlord

May 22, 2013 by

Things You Should Know as a Landlord

Becoming a good and successful landlord surely does not happen overnight as it is a process which needs a lot of planning and understanding. This is why, before you jump into this business, you need to consider your options carefully and choose what is best for you and your situation.

Also, one important thing that you need to know as a landlord is that this is the kind of income which will require a lot of hard work from you. This is so because as a landlord, you will not only have to deal with damages and fixtures, but bad tenants as well. However, even though this business is not for the faint hearted, the fact is that if you choose the right house in the right area, this means of income can be quite lucrative.

Today, I am going to be talking about the first phase of this business and that is the understanding. In the following paragraphs, we are going to be talking about some of the things that you must know if you are planning to be a landlord soon. Implement these in your plan and make sure that you have done your research before you sign any legal document. Below are some things you should know as a landlord.

Do you have what it takes?

Before you make a final decision, it is mandatory that you weigh everything and know whether or not you are capable of becoming a landlord. As mentioned, this business is not easy and so it will require a lot of your time. This is why, if you already have a 9-5 job, it is recommended that you stay very far away from this business. Also, if you are to be a landlord, you should probably learn how to be a jack of all trades or spend a lot on paying people to fix things. Moreover, always remember that as a landlord, you should also have someone as a backup in cases of emergencies etc.

Are you good at math?

As a landlord, you must be aware of the fact that a bigger property doesn’t always mean an increased return. Why so? Well this is because the potential return that you are going to be receiving is going to depend on a lot of factors like the location etc.

For instance, even though you think that that bigger apartment will win you more bread and butter, the fact is that if it requires a lot of work and fixes, it won’t be worth it. On the other hand, if you have a smaller property or apartment which doesn’t need a lot of prior fixing, your return value will be a lot greater.

Do you have Good Understanding of Tax Issues?

One of the biggest reasons why more and more people are now turning their heads towards this particular business is because you will find great tax breaks. For example, as a landlord, it will be a lot easier for you to claim your mortgage again the rental income. Moreover, coming into this line of work will mean that the insurance and other such cleaning and gardening services will be balanced against the tax.

Do You Know the Right Properties?

The reason why a lot of amateur landlords fail is because they can’t seem to find the right property and so, they either end up with no tenants at all, or have to set a very low price to the property. So, if you want to be successful, you have to ensure that you are setting up in the right area. Some of the properties of a good rented apartment are listed below.

  • Should be safe
  • Should be near work places, schools and hospitals
  • Should have a terrace
  • Should be moderately populated

Once you have asked and answered yourself the above given answers, it is time for you to start your search for the right property.

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