For many, becoming a professional landlord seems like a paradisiacal occupation. They imagine a life consisting of little more than choosing your next dream property, planning out its renovations, renting it out for a tidy sum, and then living off the profits.
The reality is very different. Few people are truly cut out for the fast-paced, high-stress world of property management, and fewer still have the necessary capital, organisational capabilities, and nose for business that are required.
If you’re on the verge of crossing from one to the other, it’s a good idea to stop, take a deep breath, and consider these three top tips for aspiring professional landlords…
#1: Do Your Calculations
The most important thing for aspiring professional landlords to consider is whether or not your plan is financially viable. The chances are that you won’t be jumping in headfirst; you probably already have at least two or three properties in your portfolio, so you know how much money is required to purchase suitable homes, renovate them, and keep them until you can fill them with a suitable tenant. You’ll also be aware of the costs of maintenance, upkeep, and on-going agency fees. However, covering these outgoings when you’re earning a secondary income is very different to covering them when your rental earnings are your sole source of capital. Before you take the leap, you need to sit down, work out how much you’ll be making and how much you’ll need, add ten per cent for emergencies, and only consider taking the plunge if these figures tally.
#2: Choose Your Tenants Wisely
Another thing to consider is how heavily reliant you’ll be on your tenants once they become your sole source of income. Although it is always important to choose them carefully, it will now become imperative, and that makes tenant referencing essential. Companies like HomeLet are probably your best option, as they’re professional, experienced, and understand exactly what they’re doing. Remember that, if you choose to skimp on the process or circumvent it, it could put everything you hold dear in jeopardy.
#3: Understand the Importance of Insurance
Becoming a professional landlord means putting every possible safeguard in place, and insurance, like tenant referencing, will be one of the best tools at your disposal. To avoid unforeseen payments arising, you need to be covered at all times, and that means choosing a comprehensive plan specifically tailored to a professional like you. This way, come rain, shine, fire, or flood, you know that your business and your profits will be safe from whatever life might throw at you.
Protect your investments and safeguard your future today: follow these three top tips to take your property business to the top of its game.