Want To Be A Landlord?
If you want to invest your money, bricks and mortar is typically a safe bet. You could flip properties to sell on for a profit, or rent them out to secure a fixed monthly income. Why not be a landlord?
The demand for rental properties is always high, and even though the property market can go through peaks and troughs, it’s unlikely that you’ll ever struggle to find tenants. You might think you need to have a lot of money to become a landlord, but there are plenty of ways to go about it. Here are a few to consider.
Rent Out a Room In Your Home
If you have an extra room in your home, why not rent it out and earn some extra cash? While it might not be for everyone, for some people it’s the perfect solution and means you get a good chunk of your mortgage and bills covered each month. Decide whether you will be renting the room alone and include bills in this, or whether the tenant will split the cost of bills when they come in. Will meals be offered, and will they have an additional living space for their sole use or just the bedroom?
Rent Out Your Property and Live Somewhere Else
Many people invest in a property and live in it themselves. This is great, but if you can live elsewhere for cheaper, then you’re making money each month and having your mortgage covered. Maybe you’re able to live with parents or family for significantly less, allowing your tenant to essentially pay your mortgage for a number of years. Providing you give the correct amount of notice, you could live in it yourself later down the line if you wanted to or sell for a profit. If you can only afford the one property, this could be a solution.
Buy a Property To Rent
The good thing about buying a house to rent out is it’s much easier than buying for yourself. You’re not searching for YOUR dream property, just somewhere that’s clean and livable. Even if you don’t like the tiles, bathroom suite, kitchen or the size of the garden, someone will. Again, because of the shortage of rented properties, you won’t struggle to find people to rent it. If you’re unsure, you could check out investment tips from sites like Flambard Williams.
It’s not all sunshine and rainbows being a landlord, and as with anything, there are downsides too. You have to pay for wear and tear, pay for the relevant landlord insurances and sort out any tenant issues (unless you pay a letting agent to manage it for you). Inadvertently ending up with bad tenants can lead to legal issues and other problems which are all something to bear in mind.
However, if things go well, being a landlord can earn you a solid income, and you have the stability of owning property. Over time, your investment will continue to grow so whether you continue to rent or sell later down the line you’re putting your money in a good place.
Could you ever see yourself as a landlord?