There is no denying that income is the most popular reason people cite in becoming a landlord and knowing that you will receive money each month (if you have a tenant and they pay on time) which covers the buy-to-let mortgage and hopefully provides you additional income every month.
There is also the fact that many people like the idea of owning property. As long as the condition of the house is maintained or improved, it will hopefully gain value over the years, allowing landlords to make a profit at the end of the mortgage period, or when they decide to exit the market.
The fact that acting as a landlord provides an opportunity for short and long-term income is pleasing to many people. If you have money you are willing to invest, you have plenty of options, but not every option appeals. Placing money into an ISA or with a broker to spend on your behalf may not be exciting, or you may not believe it provides you with enough income.
You can influence the income you generate as a landlord
As a landlord, you have the chance to affect the income you receive from your rental property. No matter what investment you make, you should research the market before you spend money. The need to research is as real for the rental market as it is for buying shares. However, when you buy stocks, your engagement is limited to buying more shares or selling your shares.
Landlords, however, can make improvements to their home, and enhance the likelihood of generating a higher return on their investment. The chance to be hands-on with their investment appeals to a lot of people and knowing that the more you put in, the more you can get in return appeals to many landlords.
Decide what sort of landlord you wish to be
For some landlords, the critical reason to assume the role is that it provides them with purpose and career. If you aren’t enjoying your current position or you aren’t employed but have the opportunity to invest, acting as a landlord can consume your time and give you the chance to engage with others.
One of the best things about being a landlord is you can choose how engaged with the role you are. If you have time and you are confident about acting as a landlord, you can cater to your tenants yourself. However, if you lack time and confidence in the role, but you want to generate income, you can enlist the services of a property management company.
Although hiring a property management company costs money, either a flat-rate or taking a commission, you can be confident that your property is cared for. While using property management services requires payment, the benefits and expertise of the professionals may help you generate more money over a sustained period.
Ways that property management companies help you generate further income include:
· Vetting tenants and selecting the most suitable candidate
· Cleaning the property to the highest possible standard
· Maintaining the property’s condition
· Liaising with tenants, ensuring you don’t have to get involved with the process
If you want to be a hands-on landlord, you can be, but be warned that it often isn’t a natural process. Many landlords find the assistance provided by a property management company makes the process easier and more rewarding.
No matter what reason you have for becoming a landlord, you should call on experts for support and guidance. At Holmes Estate Agents, we are here to assist you in finding and letting property, so get in touch.