Becoming a Landlord |Things To Be Consider

It is often says that never rely upon one income. Always go for other source of income. There could be many source of side income. One could be becoming a landlord. But before becoming a landlord many things keep in mind like rights of landlords, rights of tenants. For becoming landlord of course there are ups and downside. So to become a landlord considers its advantages and disadvantages.

Advantages

• When landlord gives property on rent of course he receives rent. This is income for him. This income can be used to fulfil other needs like for future investment, home repair, college saving account etc.

• As property value normally appreciates so this rental property could be a future income for you and you can receive more money by selling it.

• If you receives good amount of rent then you can buy further properties so you can expand your business.

• Becoming a landlord is a full time job. It’s not an eight hour job with office setup. So you can do other work along with scheduling this task.

• When you own a property then you become knowledgeable about many terms and rules of real estate which also increases your knowledge and experience which are not taught in school otherwise.

Disadvantages

• If you have more than one tenant than some time collecting rent from them becomes tough. Definitely you will face tenants of different kind. Some will pay rent on time while others will not. One option is that you may hire managing agents to handle all these tasks but of course you have to pay some fee for it and it will become expense for you. So take all these things into consideration before becoming a landlord.

• All tenants are not to be prove good for you. Some handle your property like their own. They don’t care. So in many times you have to make repairs like flooded basement, leaky roof, broken appliances. So you have to bear expense for repairs. That is an additional cost.

• All the time conditions are not same. Some months you receive rent on time, as such no repairing work. But at the same time it may be possible that some months your home may remain empty or you may have to pay more charges on repairs or on other issues. So along with a good landlord you have to be a good financier. So that you could manage all issues in a well manner.

These were some pros and cons of becoming landlord. It’s not very difficult to become a landlord if you know rules and regulations. You have knowledge about your and your tenant’s rights and can manage other issues like repairing etc.