Can I Make a Living Just from Being a Landlord?
Many residential landlords choose to run their operations alongside another job so that they can make ends meet. But is it possible to make a living just from being a landlord? Find out here…
The prospect of becoming a landlord is an understandably exciting one. You get the opportunity to be your own boss, take on exciting projects and be as hands on as you see fit. What’s not to like?
The question is, is it possible to make a living just from being a landlord? The truth is, making a living as a landlord is a more attainable goal than many people initially expect. Sometimes, all it takes is time, perseverance, and an eye for a profitable investment.
It’s not easy – sure – but certainly possible! So, if you’ve already received a quote from a conveyancing solicitor and are ready to start a new endeavour, read on to learn more about what it might take to make a living as a landlord…
8 Ways to Make a Living as a Landlord
- Cut Costs by Doing Practical Work
If you’re going to make a living as a landlord, then you’re going to need to save as much money as possible when it comes to expenditure. What’s the best way of saving money? Doing some of the practical work yourself!
Whether you’re getting out your toolbox for some essential repairs prior to putting a rental property on the market, or you are responding to a reported issue from a tenant, taking on small jobs yourself will save money. Ultimately, this will help to make being a landlord a full-time gig.
- Know the Right People
That being said, you’re not going to be able to do everything as a landlord. That’s unless you’ve got expertise in plumbing, electrics and heating. So, for jobs where you are going to have to rely on the experts, it’s important to find the right people for the right price.
Many people find it difficult to make a living as a landlord because they are using the wrong tradespeople for the wrong price. Doing a little bit of online research and asking around for suggestions will go a long way.
- Get to Grips with the Property Market
One of the biggest mistakes you can make that would stop you from being able to make an effective living would be putting unsuitable rental agreements on offer. So, if you’re going to be making a living as a landlord, then you’re going to have to get to grips with the property market, stat.
If you’re able to understand the average rental prices for certain properties, and the areas they reside in, you’ll be able to maximise the profits you’re making from rental agreements.
- Seek Out Properties at Auction
Buying a property to rent out can prove to be very expensive, making it difficult to recoup your investment. Well, it certainly can be if you think outside the box!
If you want to save some money and make it easier to make a living as a landlord, then you might want to consider looking for properties at auction. Sure, what you’ll be getting might be a bit rough around the edges, but it could prove to be a savvy decision.
- Don’t Put Your Eggs in One Basket
A critical mistake many first-time landlords fall foul to is putting all of their eggs in one basket. By that we mean investing every last dime into one property without leaving anything spare for the properties’ upkeep, or issues concerning rent arrears.
That means, if you’re on the hunt for a property, you’ll need to consider aiming a little below what you think is possible. That way you’ll know that you can afford its upkeep and continue to build a property portfolio.
- Have a Long-Term Plan
Staying on this topic, if you want to make a living just from being a landlord, you’ll need to think long-term. It’s all well and good buying a property and renting it out, but you will need to have a clear plan in place that sets out how your budget is going to change moving forwards and what you’re going to do with it.
By setting out a clear financial plan for the long term, you’ll be able to plan out exactly how you want your career as a landlord to pan out.
- Be Open-Minded to Tenants
If you want to be a successful landlord, then you can’t be too fussy when it comes to choosing your tenants. Of course, if you have a valid reason for refusing a tenant (such as if you have reason to believe they won’t be able to pay rent), then you will be within your rights to refuse them.
However, if you clash on a more personal level, this may not be reason enough to refuse them. To be a successful landlord, you’ll need to have tenants that will respect the terms laid out in the tenancy agreement – that’s all.
- Consult Legal Advice
Litigation involving tenancy agreements can be a financial nightmare, which makes being a landlord a much less viable career. So, to avoid that from happening, you’d be wise to consult expert legal advice so that you can draw up agreements which can’t be exploited.
If your tenant then breaks the agreements, you’ll be much more likely to win any litigation cases in court, helping to protect your income.
Are You Considering Becoming a Landlord?
Living off of just being a landlord is certainly hard work, but nothing good ever comes easy, right? If you follow these tips and have the right people around you to lend a hand, then being a full-time landlord is certainly possible.
Are you a full-time landlord already? Or are you looking to get started? Why not leave a comment below with your own advice or query so we can keep the discussion going!