Property is one of the hottest investments at the minute. If you ask people where the most sensible place to put your money is, that’s usually what they’ll say. The price of properties is always on the rise and the amount of rent that you can command is going up all the time. However, people will also tell you that being a landlord is only a good investment if you’ve got bags of extra time on your hands because looking after a property takes up most of your life.
It’s true that being a landlord is more hands-on than a lot of other investments but is it really as much work as people say?
Finding A Property
The first thing that a landlord needs to do is find the right rental property. There’s a lot of things to consider here. The location is vital because even if the property itself is amazing, you’ll struggle to rent it out if there are no shops or good schools nearby. On the other hand, if you pick an expensive location you’ll have to put more investment in to start with. But if you buy a cheap property you’re going to spend lots of time and money renovating the place.
You need to find a good balance between price and location if you’re going to make good money.
Looking After The Property
This is the thing that often puts people off being a landlord because it can take up a lot of your time but it depends on the property that you buy. If you spend less on a property that needs a lot of work, you’re going to be putting a lot of hours into making regular repairs. However, if you spend a bit more upfront, you can be a bit more hands off. You can also hire a property management company to deal with all of the day to day running for you.
If you want to invest in property but you haven’t got the time to deal with it yourself, it’s a good way of dealing with all of the repairs without having to be involved personally. If you’ve got more than one property you should definitely hire some help.
The tenants that you choose have a big effect on how much time you’ll have to put into the property later. If you rent the place out to people that are damaging the house all the time, you’re going to be round there every week sorting out repairs. But if you can find clean conscientious tenants that take good care of the house, you’ll hardly have to see them. It’s never possible to know for sure but references from previous landlords can give you a good idea of how responsible the tenants are going to be.
Being a landlord can be a lot of work but you shouldn’t let that put you off. If you choose a good property, find some responsible tenants and hire a little help, it’s actually a fairly casual investment opportunity that shouldn’t take up that much of your time.