Steven Taylor Taylor Equities is a landlord and real estate professional with years of experience in the real estate market. Real estate mavens like him enjoy educating their community about the benefits of investing in real estate and becoming a landlord. While many experts believe strongly that anyone with the drive to be successful can make money in real estate, there are certain things one should know before becoming a landlord. Here are some tips for those considering buying an investment property to rent.
Being a Landlord is Hard Work
Real estate novices often think landlords just sit at home and collect rent checks. While one of the benefits of being a landlord is collecting passive income, you still have to work hard for that money. In order to collect rental income, a landlord must find a suitable property, purchase the property, find suitable tenants, sign a lease agreement with those tenants and maintain the property to be in compliance with all local safety, health, and building codes. Once all of this is taken care of, the landlord is free to sit back and collect passive income. But each of these responsibilities takes time and effort and those expecting free money will likely be disappointed.
Being a Landlord Comes with Risks
Although real estate is a practical investment, there are always risks. If you have vacancies in your building and you have a mortgage to pay, you may be forced to pay out of pocket to keep your investment alive or risk going into foreclosure. A foreclosure can seriously damage your credit score and will make it difficult to buy any more properties in the future without paying cash. Plus, you are on the hook to pay for any damages that occur to the building or any maintenance that is required. Most savvy landlords will buy a property insurance policy to protect them in the event of a disaster. But keep in mind this is an additional expense that comes out of your profits.
Being a Landlord Means You’re Always on the Clock
Although being a landlord doesn’t require you to work 24/7, it does mean that you’re never truly off the clock. If a pipe bursts in your building a 3 am, it’s your responsibility to fix it or find someone who can. It’s a job that you can never truly leave because your responsibilities to provide a habitable environment to your tenants extends beyond the workweek. You can request that your tenants contact you with non-emergency requests within a particular time frame. But if disaster strikes, you have to be ready to handle it or else risk the viability of your investment.
Being a landlord is far from easy, but it can be a rewarding pursuit if you are ready for the responsibility. Successful landlords like Steven Taylor Taylor Equities suggest all aspiring landlords consider these simple tips before deciding if they are up for the challenge.