Have you got a picture of yourself sitting on a beach while the money floods into your bank account from a string of self-managing rental properties that you never even visit? In this dream, is the biggest stress which cocktail to choose from the beach bar and how to get the sand from between your toes? Beware of anyone who says being a landlord is the holy grail of completely passive income. Property is a very sensible and proven route to grow wealth but as with every investment, a certain amount of groundwork needs to be done before the beach beckons.
Below is a list of amateur landlord stress factors and how to avoid the common traps.
Forgetting the mantra: Location, Location, Location
Just because something looks like a bargain does not mean it is the right property to give a solid return on investment. Location is such a critical factor in choosing the perfect rental property if you want it to be well occupied and provide a positive return and long-term capital growth. Check out the pricing for similar properties in the local area and see what demand there is from the rental market. Is the property miles away from public transport links or nearby schools? Put yourself in your rental target market’s shoes and think would you want to live there if you were them.
Believe You Are Superman and Do Everything Yourself
Keeping an eye on cost is an important business skill and one that every landlord needs to be good at. Believing that you can do everything yourself to save cost is frugal, but not always the best plan. You have to calculate the time that you spend working things out for yourself and put a value on your time. Outsource the jobs that you are not comfortable doing to experts so that your time is freed up to spend on more strategic activities. If you need help sourcing your next property for example, why not give us a call? We have a wealth of experience to draw from which could save you thousands in the long run by picking the right investment to meet your goals.
Letting Tom, Dick And Harry Move In
Doing the appropriate background checks on the people who are going to be occupying probably one of your biggest assets is an important step before handing over the keys. You may be desperate to start generating some income but don’t skip the reference and background check phase unless you are happy to accept stress down the line.
Cutting Legal Corners
Sleepless nights and stress are caused when you have not set your properties up in the correct way at the start. Don’t even think about cutting corners on insurance, alarms, fire and safety prevention or gas and electricity checks. If our clients have any queries on the latest legislation, we are always happy to point them in the right direction. Ultimately we believe that to sleep well at night, everything needs to be managed professionally and we are always happy to help clients do this.
Winging it with Tax
Tax is a fact of life. As you become a landlord, you will need to set up and maintain records with money received and expenses going out that are then reported to HMRC, often via your self-assessment tax return. It is not a difficult process but it does require a commitment to record things accurately. We recommend getting an accountant to help you to ensure you are not surprised with an unexpected tax bill that prevents you getting to that beckoning beach.
Not Listening To Your Tenants
Every successful business has a product or service and a consumer. As a landlord, you are providing a service to a tenant and they are therefore your customer. If you have a string of tenants unhappy with something specific about your property, this needs to be listened to if you want to have a stress free landlord life. Solving problems quickly and future proofing your property can save lots of headaches down the line. If you do not have the time to manage a property yourself, why not outsource the day to day management to property experts like ourselves and spend your time more strategically developing your portfolio.
Want To Avoid Landlord Stress? Give Residential Estates a Call
Don’t let the potential pitfalls of becoming a landlord put you off as you will be in safe hands if you partner with us. Residential Estates have in-depth knowledge of property investment opportunities and becoming a successful landlord so why struggle and go it alone when you can tap into our knowledge?
If you would like to speak with an expert member of our team, we will be happy to have a chat. We can help you find the right investment opportunities where we expect the biggest return on your investment. We can also help you manage the hassle and risks associated with becoming a landlord so you can get to the beach quicker and with less stress along the way.
To find out more, please contact us today by calling 01244 343 355 or by emailing firstname.lastname@example.org.