Every landlord loves a tenant who does everything the right way, and who you hear from only when a legitimate problem arises. The tenant-landlord relationship is just like any other: Your actions should reflect how you expect to be treated. If you are going to be a landlord, you will need to deal with tenants fighting other tenants, tenants doing harm to your investments, and tenants who are delinquent on their payments.
When problems really arise that require you as the landlord to step in, the way you react to them could be crucial. As the landlord, vet horrible tenants to be able to spot them in advance and react accordingly. Terrible tenants can cause you many problems, including damage to the property (whether intentional or accidental), failure to pay the rent, and complaints either to neighbors or to authorities.
Positive aspects of becoming a landlord
However, despite the challenges, there are many reasons why people choose to become landlords.
- For many people, the appeal is the potential to earn income without having to work for it. With the right property and the right tenants, you can earn a steady income without having to punch a clock or answer a boss.
- For others, the appeal is the opportunity to be their own boss and have complete control over their investment.
- And for some people, the appeal is simply the satisfaction that comes with providing a safe and comfortable home for tenants.
Drawbacks of becoming a Landlord:
Becoming a landlord entails a lot of drawbacks.
- For instance, if you are going to be a landlord, you are going to have to deal with tenants fighting other tenants, tenants doing harm to your investments, and tenants not paying. When problems really arise that require you as the landlord to step in, the way you react to them could be crucial.
- Some tenants that attempt to sublet a property, or who have numerous extending guests coming in and out, cause problems and liabilities to a landlord. In some cases, long-term tenants can convert the property to short-term rentals via Airbnb or Stayz without permission, so that they can benefit unlawfully from your investment.
- Another thing to consider before becoming a landlord is the amount of work involved. While you don’t have to be available 24/7, there are certain responsibilities that come with being a landlord. You will need to be available to show properties to prospective tenants, and you will also need to be available to deal with any maintenance issues that may arise.
When becoming a landlord, what should you bear in mind?
There are certain things that all landlords need to be aware of before they take on the role. Here are a few things to keep in mind:
- Being a landlord is a big responsibility. You are responsible for the safety and well-being of your tenants, as well as the upkeep of the property.
- There is a lot of paperwork involved. You will need to keep track of leases, rental agreements, security deposits, and repairs.
- You will need to be proactive in marketing your property and keeping it occupied.
- You will need to be prepared for the occasional problem tenant.
- You will need to know the landlord-tenant law in your state.
- You will need to have a good working relationship with your property management company.
- You will need to be comfortable with the financial aspects of being a landlord, including collecting rent and paying taxes.
Conclusion:
There are a variety of reasons why someone might choose to become a landlord. For some, it’s a way to supplement their income and provide stability in retirement. For others, it’s a way to invest in the future and build equity. And for some, it’s simply a passion for real estate and a desire to take on the challenge of being a property owner and manager.
Whatever might be the case, it’s crucial for someone to remember the obligations that come with being a landlord. The many benefits and drawbacks that landlords may have must also be considered.
After all, becoming a landlord can be a rewarding experience, but it’s not for everyone. If you’re thinking about becoming a landlord, it’s important to do your research and make sure you’re prepared for the challenges that come with the territory.