Are You Landlord Material?
2009-01-09
Don’t get caught up in the hype of owning investment property without considering whether or not you would make a good landlord. Here are some things to consider:
- Are you even tempered? Tenants come in all shape, sizes, and dispositions. If you’re lucky you’ll get one that pays his rent on time and never complains. However, this is not necessarily the norm. Are you prepared to be cussed out when you call and ask for the rent? Can you stay calm after the fifth late night call in less than a month? You need to be able to remain calm in any situation. An irate tenant could do serious damage to your property.
- Are you organized? You must be able to keep good records to win at this game. Of course you must always know how much your tenant owes you at any given time. But you also must keep up with all the expenses related to the property. Every bill you pay is tax deductible. One of the beauties of rental property is that there are a vast number of deductions you can take to reduce your tax liability. This includes the mileage you put on your car when you’re dealing with rental property business.
- Are you financially stable? Yes, Ive read all the ‘buy real estate with no money down’ books but a word to the wise…….. When an unexpected repair happens you better have the money to deal with it. A leaky pipe can destroy ceilings and walls. A leaky roof is even worse. You could end up losing your investment if you do not make timely repairs. In my experience I’ve found that everything takes longer than you thought it would take and costs more than you thought it would cost.
- Are you patient? First you have to wait for the right investment property to buy. Then you have to negotiate to get it at the right price. If not, you might find that you have overpaid and despite all your efforts you can’t make any money. Believe me, you will not relish the title ‘Landlord” if you are not being paid to do the job.
Being a landlord can be rewarding and fun or it can be a nightmare. Make sure it’s the right job for you. There are lots of ways to make money that won’t cause you to lose sleep or pull your hair out. Being a landlord is for those who are right for the job.
