Landlords have been found to thrive in financial markets. However, it isn’t all that easy to succeed at this task. You need certain skills and desires to profit from this. There is a lot of pressure involved, but if you have what it takes then being a landlord is a suitable way to earn a living.
What it takes to be a landlord?
§ You should know the right people – You need to expand your property portfolio quickly if you want to earn a living. You can’t handle all the work yourself. Having concrete personal relationships with contractors and other people will help you to negotiate discounts and enable you to increase your profit margin. These trustworthy relationships take time to build therefore if you already have stellar relations with all the necessary people, you are ready to start. Better connections will give you better access to potential tenants, thereby reducing your advertising costs.
§ You should be capable of performing tasks yourself – While starting out as a landlord it is too expensive to get hold of professional contractors. So if you wish to turn your income into profits, being able to do work yourself like doing yard work, light plumbing, construction will help you save money.
§ Be capable of handling responsibilities – Hiring a management company to take over the job is a prudent choice, but will make a dent in your profits. So prepare yourself to answer the phone at any hour of the day to tackle various household problems.
§ You should enjoy dealing with people – Some tenants can be difficult to manage so you need to choose your potential residents well and be capable of dealing with the untoward incidences that some may cause. Dealing with strangers is not easy and even nice people won’t always care for your home the way you would.
§ Make sure your rent covers your expenses – If you have mortgagee expenses on your property, you will certainly not have the pricing flexibility your competitors have. Your rent should be high enough to cover your expenses and absorb a profit.
§ Be ready to work like crazy - As you add additional properties, the work you put in will start to pay off. So, if you are willing to put in the necessary labor and long hours, you will succeed.
The Bottom Line
If you fulfill these criteria then there is nothing stopping you from becoming a golden landlord and earning your living in style. However, make sure you hire a reputable and honorable property management company to manage and take care of your rental properties.