Don't Make These Classic Landlord Mistakes! | Get Financial Freedom Tips | Transform Your Financial Future


Friday, September 1, 2017

Don't Make These Classic Landlord Mistakes!

Becoming a landlord is one of the most popular avenues that many people have found to make some extra money and even create an entirely new career for themselves. It's often shown to be one of the most reliable and profitable forms of investment there is and can be a fantastic way to earn money even while continuing to maintain a separate full-time career. However, don't let that fool you into thinking that it's going to be inherently easy to be a landlord. The truth is that being a landlord comes with a whole host of complications and difficulties that many people simply aren't aware of or able to deal with. With that in mind, here are a few of the most common mistakes that many new landlords make, and how to avoid them.


Picking the wrong properties

Choosing the right property can really make or break your career as a landlord. There are so many factors to consider that a lot of people consider it to be a pretty overwhelming prospect. The important thing is to know what you want out of a property and to make your judgments accordingly. If you're looking for a property that requires very little work and input from you on a direct level, then you will probably want to make a larger initial investment in a newer property. However, if you want to get a good deal on your initial investment, then you need to be ready for extra costs to come up later.

Not vetting your tenants

Tenants are an incredibly important part of being a landlord, after all, if no one is living in your properties then you're just going to end up wasting your money. However, far too many landlords don't think of their tenants in nearly enough detail. Choosing the wrong tenants can make your life a waking nightmare. The best thing that you can do is to screen your tenants carefully. Sure, they might seem responsible, but you should first make sure that they can actually afford to pay the rent but also contact previous landlords to find out what kind of tenant they have been in the past.

Taking on too much

Many people become landlords as a way to bring in extra income without having to start an entirely new career. However, it's very easy to end up taking on so much as a landlord that it becomes another full-time job. That's why property management companies are so fantastic. They can take care of a great deal of the legwork from maintenance of the property to screening tenants which means that you're not going to exhaust yourself trying to do everything.

Of course, even with all of this advice, it's still incredibly important that you remember that being a landlord is a job and requires a great deal of work from you. If you're not willing to put in the right amount of work then not only are you going to end up wasting both time and money, but you're doing a disservice to your tenants as well.

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