What you need to know before being a landlord

Investing in property can be a powerful wealth-building tool. Because of the money and time involved, do so as part of an overall investment strategy. Before become a landlord, ask yourself these question :-

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  • What type of property investment will increase my financial worth?
  • This is important as you need to know the type of property that really worth. You need to do some research especially the market of the property. Location also important as you must know the need of the market. Not all market same at the location.
  • Because property is not liquid, i.e it cannot be sold quickly, will this be a problem for me when there is a need for cash?
  • To sell a property not a day process, sometimes it takes a year to settle it. Before that you must know how to generate income or you have a cashflow and not depend solely on the property you buy it. You must have property plan and adequate money. There’s also a property GURU that can teach you how to get income before selling it. Just get it by search via internet.
  • Will I be able to handle long-term ownership and maintenance of the property, even if my cash flow is not consistent.
  • This is why you must have PLAN B if something bad happen such as tenant not paying. And there’s a debt on the house. Properly plan before buy a house if you want to make the house as your investment.
  • What type of property investment will contribute to my retirement income ?
  • There’s many type such as RENT, SUBSALE, FLIPPING investment. You need to choose which type suitable for you. For long term, maybe renting your house is good but if you want the CASH money for other’s investment you could try FLIPPING.
  • How much income do I expect from my property investment when I retire?
  • You must know if you want monthly income or a lump sum money. It depend on you. Before make a decision, learn and do some analyst whether you could survive in your retirement age by taking that option. You also need to calculate the expected expenses, tax , etc in the future.

Become a landlord not an easy task. You have a responsibility to your house. If you rent the house, you need to collect rent and there might be instances where it is unpaid or paid late. There’s many type of tenant that you need to face. For your information, I’m with my team on going to make a renting system that could help landlord. I’ll announce on this blog if it launched.

Back to the topic, you also need to repair the house, prepared document and taxes to be paid. Start with a small piece of property first so that you can manage the financial aspects. With experience you can move on to bigger pieces of property, especially when you have made money from the capital appreciation from your sale.

Source :- Money Sense – AKPK

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