More and more people are taking the plunge and deciding to go it alone, but one type of entrepreneurship that many people might overlook is becoming a landlord.
If you have enough capital to invest the buy-to-let property industry is full of opportunities, and despite recent changes to taxation rules there is still a lot of money to be made in this industry if you know what you’re doing. If you are considering becoming a landlord in 2020 then here’s a quick overview of the things you should bear in mind.
Understand the Laws
Before you look at properties and get carried away, the first thing that you should do is get to grips with the rules and regulations involved when it comes to being a landlord. You might think that being a landlord is plain and simple and all you will need to do is sign a few contracts to start letting a property. However, there is a lot more involved in this line of work.
You will need to learn what you can do as a landlord as well as the rights that a tenant has and much more. Depending on where you live, the rules and regulations put in place might be different from other areas so, it is always good to pay attention to what is in place in the area your property is so you know you are doing the right thing that that certain rules and regulations are applied correctly.
Consider the Costs
The next thing that you will need to check before you get started as a landlord is to make sure you understand and consider all the costs that you will need to cover. From purchasing the property to paying fees, taking out insurance and carrying out maintenance these are some of the things that you will need to take care of. This can be costly so, you will need to think things through and see if you have the budget to cover all these things.
Yes, it can be expensive to cover the costs but, if you can find any discounts or affordable rates it can make it a lot easier for you. For instance, you can compare landlord insurance to find the right policy for an affordable price. If you are hoping to compare landlord insurance so you can find a good quote then, you should definitely start by having a look online.
Choose What Property to Invest in
When you are considering becoming a landlord, you should have a look and see what kind of property would be best for you to start investing in. This is because you can choose from letting homes, land or even office spaces. With so many options to choose from, you should have a look at what is involved in each type of property as some will be more expensive to manage than others. If you invest in a flat, for example, you’ll spend less but also make less per month.
Make Sure You Have the Time
If you are considering becoming a landlord, you will not just hand over the keys and let out your property, there is still a lot for you to take care of. From maintenance to keeping in contact with tenants, these are some of the things you will need to keep up with regularly. Your tenants will be living in or using the property so, anything that happens to the property like damage or issues you will be responsible for dealing with these problems and resolving them as quickly as possible. You will need to make sure you can work around the requests for your tenants so, it is good to have time aside every so often.
Furnished or Unfurnished Property?
Properties that are furnished tend to do better when it comes to letting so, you will need to decide if you are going to rent out a property furnished or unfurnished. If you are letting an unfurnished property, you will need to set some rules for tenants so they know what they can and can't do to space when decorating or, you can do it yourself and provide furniture as well as keep up with the latest décor trends.
Use This as a Guide
As you can see, there is a lot involved when it comes to becoming a landlord but, to get you off to a good start we thought we would discuss a quick guide to point you in the right direction. You’ll need to think about everything from making sure you understand the laws and regulations to keeping up with the costs as well as deciding what kind of property you want to invest in.
