Three Things to Think About if You Want to Be a Landlord
Are you thinking about entering the investment property market? Here are three things you need to know if you want to be a landlord:
- Know what you can commit to! Are you little short of cash but you’ve got time, then a bit of fixer upper might be for you. If you have more money, think about purchasing a turnkey property and even hire a property manager.
- Make sure you can weather a financial storm. Have a cash reserve or credit line for ongoing repairs, and to cover lost rent due to a vacancy or tenant that stops paying rent.
- Think about the tenant perspective. Good tenants who pay on time sometimes fall on hard times — for example, a job loss. Being flexible and offering to forgive a month’s rent for good tenants not only shows compassion, but it’s cheaper than having a vacancy, repainting and finding a new tenant.
Purchasing an investment property is a big decision with lots of considerations. It's important to have a trusted team to work with that would at least include a real estate advisor, a CPA, a financial planner and a lender.
