Many people become landlords because they have dreams and aspirations of making an easy fortune. They approach it with a cavalier attitude whereby they feel that they will not have to do much in order to reap financial rewards. Whilst becoming a landlord can indeed be extremely profitable in the long term, it is not a simple walk in the park to begin with! And it is important for any prospective landlords to be aware of the concerns and issues a landlord is likely to face.
Firstly, it is normally a good idea to begin life as a landlord as a property developer. That is to say buying a property at a lower price than usual with the intention of upgraded it in your own time and at your own cost. This is normally a great way to save a lot of money; however, you must absolutely avoid cutting corners when developing your property as safety is of paramount concern.
Whether you choose the property development route or whether you just buy a property that is already safe to live in, the next step will be to make sure you have all your legal documents in place, along with insurance! Hunt around for good insurance quotes and make sure you take out well detailed insurance policies. These will cover you against a whole range of difficulties you may face.
These difficulties can include tenants refusing to pay rent due to their own financial woes. In this case it will be important for you to make sure you are covered by Rent Guarantee Insurance as you will then be protected. Tenants dodging rent payments is the most common concern landlords face, however with the right insurance policy, you will never need to worry about such a thing!
Other concerns landlords face is that of attempted theft. In this case it will be important again to ensure you are insured. But there are also other things you can do yourself. Make sure your property is water tight. That is to say, make sure it is well secured and properly alarmed and that it is not an easy target for burglars.
Furthermore, many landlords have to deal with their property becoming damaged at some point. This is of course not uncommon and so you may be able to solve such issues by coming to some form of agreement with your tenants in order to fix the damage.
As a landlord it will also be important to set out rules and regulations in terms of keeping the property clean and tidy. Maybe you will choose to hire a cleaner once a week, or maybe you will leave it up to your tenants to look after themselves; if this is the case then make sure you set out rules and regulations straight away so that you can keep your property presentable to future tenants when it comes to them having a look round.
This is of course not a definitive list of concerns a landlord may face, but as long as you follow the correct procedures, make sure you are covered by good insurance policies, and maintain a respectful relationship with your tenants, then life as a landlord will likely be a pleasure!
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