Since 2001, the private rental sector has more than doubled, rising from 2.3 million to a massive 5.4 million rental households in the UK. This number is thought to carry on growing upwards of 7 million as the years continue. Despite what people often think, landlords don’t just collect rent checks. They must understand the law, negotiate different personalities and be able to handle finances like a pro. Adaptability to various situations and problems is a key aspect of becoming a landlord, as you have to be able to handle anything that gets thrown at you. Before taking the plunge, you must consider some things that are critical for a landlord to understand.
Research is key
Like with an exam or test for school, you must have revised and researched your key topic. In this case, it isn’t mathematics or biology, but property investment and being a landlord. Experts such as RW Invest can advise anyone who needs it or can lend a helping hand in your research process. Any help that is given should be taken seriously, as these companies know what they’re doing and have had great successes. Research is one of the most effective ways to ensure you know all you can about being a landlord before actually doing it.
It’s not a 9 to 5 job
Unfortunately, landlords don’t punch time clocks and work regular hours, which means when 5 pm turns around, you’re not going to clock off your shift. While some days, it can be a breeze, other days being a landlord requires hard labour that is intensive and exhausting. For example, you may get a call from a tenant explaining there has been a small plumbing leak overnight. You must then decide whether you want to handle the issue personally or call a plumber to assess the problem (which could cost a lot of money). Keep in mind, these sorts of phone calls can be made even at 3 am.
There are legal rules to follow
There are many rules that landlords and property investors must follow. These include the strict laws over handling tenant’s security deposits, safety code handling that must be obeyed for hazards and smoke detectors, and the requirements around evicting tenants. These rules and laws are a legal obligation that you must abide by unless you want to be in trouble with the law. Plus, it’s always best to follow the rules when handling tenants, as they will appreciate the proper behaviour. Remember, if you respect your tenants, they will respect your property and you. While this may not be at the top of your priorities, it’s something to remember when becoming a landlord.
It can be financially rewarding
While being a landlord can seem stressful, it can also bring the reward of being your own boss. There is the potential to build friendships with tenants, and develop a career you’re proud to shout about. There are also multiple financial rewards to being a landlord if you do it correctly. Properties with high rental yields and increasing demand will provide investors with capital appreciation. Plus, the ability to have financial freedom when it comes to their personal life.