7 Things You Should Know Before You Become a Landlord
Some people envision being a landlord as the best gig in the world. What could be better than just sitting back with your feet up watching the cash roll in? Nothing, that’s what! Except, that doesn’t actually happen when you’re a landlord. If you plan on becoming one, here are 7 things you should know first:
1. You Won’t Always Have a Tenant
There may be times your property doesn’t have a tenant. What does this mean? You’re going to have to foot the bill. You need to make sure you have enough cash in reserve to afford this, as you never know when a tenant will just up and leave.
2. You’ll Foot the Bill for Repairs
All properties come with repairs, and it’s up to you to foot the bill for them. Whatever it may be, it’s your job to make sure that it gets fixed. The only exception being if it’s something that the tenant caused themselves.
3. You Need to Keep Your Tenants Safe
You’ll be required to check on the property every few years in order to make sure it’s safe for your tenants. You’ll need to hire someone to carry out the appropriate checks and make sure everything is in working order.
4. You Need Insurance Too
It isn’t just up to your tenant to get insurance, it’s up to you too. While they’ll need insurance for their belongings, you’ll need two different types. You’ll need actual building’s to cover the bricks and mortar, and contents to cover anything you’ve left in the building. UK landlord insurance.com can give you more advice if you need it. Don’t just go for the cheapest quote; go for the one that covers all your needs and is the best value for money.
5. You’ll Need More than One Property to Make a Mint
Don’t get too excited once you’ve got your first property. This may produce some pocket money for you, but you’ll need more than one to make a mint. Building up a portfolio of properties is hard work.
6. You Need a Different Kind of Mortgage
If you don’t inform your insurance company that you’re renting out your property, you could get in big trouble. To rent out your property legally, you need a buy to let mortgage. This requires you to sit down with your mortgage company and hash out the details so that you’re doing everything properly.
7. It Isn’t a 9-5 Thing
You don’t just stop being a landlord when the clock strikes 5. If a tenant rings you up at 4 in the morning because of an emergency, you need to tend to it. Be prepared to get phone calls at the most inconvenient times. You can hire someone to take care of this for you, but that’s an extra expense.
OK, now you know these 7 things, you should know if being a landlord is right for you. Do you have anything to add? Leave a comment. See you later!