4 Reasons To Become A Landlord
Becoming a landlord is not a decision to be taken lightly, but it is often one that many people enjoy once they have committed to it. What are the reasons that people become landlords? Could being a landlord be the ideal way to generate an income for you?
Unable To Sell
It is sometimes the case that landlords are created accidentally. This happens when someone wants to move home, but can’t sell their current property due to a poor property market for example. If the move is needed for work, to be near good schools, or for another urgent reason, then it could be that the best thing for that homeowner to do is to let their current home and use the income to move to another house. They are now landlords, even if they hadn’t planned to be. Later down the line they may need to sell the property, so it might be worth offering the lease on a short-term basis.
Many people choose to become landlords to supplement their pension. They can use the income to run alongside their pension (or as an alternative to it) to give them a good amount of savings, and then, when the time is right, they can sell the property to boost their retirement fund substantially. If this is the reason, looking at long term net lease properties could be the best option for you, as everything is kept as simple as possible, and there won’t be too much work to do – after all, who wants to worry about their tenants when they are retired?
For The Children
Increasingly, thanks to a tricky housing market, people are purchasing properties for their children to live in. They will collect rent, as any landlord would, but the benefit is that they know their tenants, and they know they will look after the property. This is particularly useful if your child is studying at school in another part of the country. You can make sure they are living in a suitable place, and when they have graduated, you can either sell the property, or you can continue to rent it to someone else. This works well because, if you buy a house that is big enough, then it won’t just be your child living there; you will be able to collect rent from the other tenants too, and potentially make a substantial income.
As A Business
People are looking for different ways to build a business that gives them flexibility but still allows them to live well. Property could be exactly how to do that. Start with one property, and then using the money made from that to buy another, and another. Only buy the number of properties that you can easily service, otherwise you could start to lose money, and if you need to sell a property then remember that this is your business; it’s not personal. You can have dozens, or even hundreds, of properties in your portfolio, and if you invest wisely in the right areas and the right properties, this can be a very clever way of making a lot of money. It does take time, though, so patience is essential, as much as it is a virtue, too.