If you’ve been wondering about a buy-to-let property, there might be one thing that is putting you off – you would have to become a landlord!
Not many people are interested in becoming a landlord as it would mean having to look after a second property as well as their own home. However, even though it can be quite demanding, it can also bring you some impressive returns.
Still considering whether you could hack it as a landlord? Take this simple test to find out!
Do You Know The Rental Market Well Enough?
As a landlord, you need to have your finger on the pulse of the rental market. That way, you will have a good idea of how much you need to charge for your monthly rent.
You don’t want to price the rent too high or else you will put off some people from applying for the apartment. It’s also important not to price it too low.
Otherwise, you will end up with a much lower income than what you should be getting from your property. If you aren’t sure what your rent should be priced at, it’s a good idea to ask The Buyer’s Agent or a similar agency.
They will be able to visit your property and value it for you.
Can You Drop Everything For Tenant Emergencies?
As a landlord, you need to be able to keep up with any maintenance and repairs to the property. Sometimes, there might be some emergency issues that you need to drop other things for so that you can take care of them.
Are you able to leave your main line of work to focus on your rental property? If not, then becoming a landlord might not be the best option for you.
Are You Aware Of Tenant’s Rights?
Both you and your tenants have certain rights that protect you both. It’s important that you fully understand the rights of your tenants so that you never unwittingly infringe on them.
If you do every infringe their rights, then they could be able to draw up a case against you and take you to court. And battling a court case could prove to be very expensive for you!
Do You Have A Backup For Late Rent?
Sometimes, your tenants might not be able to pay your rent on time.
As a result, you will have to wait around for this monthly income, which could cause you some serious cash flow problems if you haven’t’ properly planned for such situations.
If you are relying on your tenant’s income as a source of income that you will use to live, it’s important that you have enough savings behind you so that you can cope with periods when they don’t pay their rent on time. If their late payments persist, you should think about taking measures to evict them.
How did you answer all of the above questions? Hopefully, your answers will help you decide whether becoming a landlord really is the right thing for you!