Becoming a landlord has many benefits, and it also comes with many important duties. If you have been thinking about renting out a newly purchased property, or one you have had for years, there are some things you need to ask yourself.
While we understand that every individual and situation is unique, we have compiled some common questions that can help you better determine if you are ready to the take the landlord leap.
Are You Financially Secure?
There are a range of financial factors to being a landlord and the mortgage of your rental property is just one. Not only will you need to generate enough money off tenants to cover the mortgage, but you need to be financially secure enough to cover of repairs, maintenance, property management fees, insurance, capital expenditures and other costs that can arise.
Can You Account for Vacancies?
Following on from being financially ready, you need to understand the loss of revenue that occurs with you don’t have rental income, and how you will manage during these periods. Typically, with leases there is some turn-around time where your property may be vacant. You should also consider the amount of time it takes for a successful applicant to move in and start paying rent.
Do You Have Time for Landlord Duties?
Finding time to maintain your rental property and complete your required landlord responsibilities can be difficult if you are unprepared. To be a respectful landlord it’s important that you do what is legally asked of you and create a safe and habitual place for your tenants to live. Enlisting the help of a property management company will help you better manage your responsibilities, and better understand your legal requirements.
For more information read our article ‘The Benefits of Hiring a Property Management Company.’
Is This the Right Investment Choice for You?
Like all purchases, there is risk involved and there can be doubt as to where and when to buy an investment property. That is why it’s essential that you know the property market as much as possible and what you can afford to spend. A qualified property management team can take away this burden and help you understand where to buy, and also what to look for in a reliable tenant.
Get to know the property investment market a little better in our article ‘Adelaide’s Top Suburbs for Investment.’
Ask our Team at InStyle Property Management
Once you have asked yourself these key questions, it’s time to turn to the professionals. Our team at InStyle Property Management can support you on your journey to becoming a landlord. Speak with us today.