Some might think becoming a landlord is an easy way to financial independence – just buy a house or flat, find a tenant and wait for the rent to start rolling in. However, there’s no such thing as easy money – being a landlord takes dedication, commitment and a willingness to respond to problems 24/7. If you’re the sort of person who likes their 9 to 5 job and prefers to relax in the evenings, you might want to skip this. However, if you’re prepared to answer an emergency call at 3am and go the extra mile required to be a skilled landlord, read on to find out three risks of renting out a property.
Even the most well-intentioned tenant can cause damage to furnishings, appliances and even the structure of your property. And if you have a disgruntled tenant on your hands, the damage can be extensive. Repairs cost not just money, but time as well. And if the tenant’s moved out, every day you spend fixing the property is a day you’re missing out on rent from a new tenant. If you’re faced with extensive damage, you might want to consider a supplier specialising in landlord furniture like David Phillips Furniture, who can supply you with a full set of furniture quickly and easily – and even deliver and assemble it for you.
When a property is occupied, the rent will cover your mortgage payments and give you extra on top straight into your bank account – a nicely profitable venture. However, the minute your tenant leaves the property and stops paying rent, it’s costing you money – not just the mortgage, but tax payments and potential deprecation of the property value, too. Finding a new tenant is its own headache – you don’t want to wait too long for a new renter, but you don’t want to accept just anyone without the proper checks. You might want to consider insurance to cover your mortgage payments if the property becomes vacant.
Most tenants want the same things as their landlord – keep everything neat, tidy and in working order, and the rent will come in a timely fashion. Unfortunately, a few people have the attitude that if they don’t own something, they’re free to abuse it – for these tenants, skipping their monthly rent is no big deal, but it can cost you hugely if you can’t cover your mortgage payments. Horror stories abound, so it’s imperative to carry out the proper checks before you let a property. Again, another useful option is to take out rent insurance if you’re worried about missing out on payments.