Becoming a landlord, whether commercial or residential, can be a rewarding experience and an excellent long-term investment. However, it isn’t at all times the smoothest experience available.
Management Can Be A Full Time Job
You might start with one property. However, even one home or office can take up quite a lot of your time. Especially if you have a full time job or family. But if funds are sufficient and you can afford it, it is nearly at all times worth using a real estate rental agency or a commercial real estate management company. These services offer experts who can take care of things that you haven’t got the time, resources, or expertise to do yourself, and you can generally undo them anytime you want.
Inspection Required
As a property owner, it is your job to take care of it. So inspecting your property regularly will help you catch problems before they get worse. For example, if you notice too much humidity in the bathroom, you can tell the occupants to leave the windows open for a few seconds each day to stop mold. You can even keep an eye out for evidence of damage which could mean your tenants aren’t maintaining the property as they should.
Remember Being a Landlord is a Business
No matter how small your portfolio is, if you own property and rent it out, you should think of it as a business. You earn money, spend it, and pay taxes. The point is to make money while giving people a safe place to live. But, as with any business, this isn’t a sure thing, and 50% of landowners are losing money. But you can increase your chances by running your portfolio like a business rather than giving non-paying tenants too much leeway, which might work against you.
You Will Learn a Lot on the Job
Properties are difficult to understand at first. And when you become a landlord, a few things surprise you. Expect minor problems to bother you for a while and then big ones to unexpectedly take up most of your time when you wake up. The longer you do this sort of work, the more likely you are to spot potential problems. After a few bad experiences, you will also know what red flags to look out for and what sort of situations are creating problems.
You Have Many Safety Obligations
Landlords must make sure that equipment is maintained in a safe condition. This includes gas, electricity, and emergency features. To do this, you need a gas safety check every year, PAT testing (and EPC certification in the UK), and fire alarms. You are also required to install carbon monoxide detectors in properties with gas boilers and fireplaces. Failure to do this will result in your license being revoked. But at worst, it could mean someone dies because of your negligence.
Summary
When you become a landlord in your home or office, there are some things you should remember of. First, it can take up quite a lot of your time. Also, it is better if you run it as a business. And, obviously, there are various safety obligations, many of which are strictly regulated and vary from country to country.
