Is Landlording for You?
So, You Decided to be a Landlord? Why?
That’s the big question…right? What is your END GOAL as a landlord? Tax benefits, rental cashflows, prospective appreciation of property, or perhaps it is the principle paydown of your mortgage? Perhaps…it’s all of these reasons.
Rental real estate provides multiple means to grow wealth through the long-term ownership of property while having someone else’s income to paydown the mortgage for you. Exciting, huh?
SO…WHY ISN’T EVERYBODY DOING IT? Here’s why :
- You’re dealing with PEOPLE. People are unpredictable.
- Entry point can be tricky. Downpayment. Cash set aside for repairs.
- LACK OF SYSTEMS. Period. Without proper property management systems, you are left running around with your head cutoff.
So, in my opinion, the majority of landlords fail because they lack property management systems.
ASK YOURSELF – BEFORE BECOMING YOUR OWN PROPERTY MANAGER
So, you need to ask yourself as a new landlord, what systems do I need to succeed in the rental of my property? This could be how you will handle rent collection or repair calls. This could be how often you will inspect your rental home. Regardless, it is the long term maintainance-free aspects of this business of landlording that will keep you going.
What I mean by “keep you going” is the emotional and practical energy to assist you in making the necesssary decisions in becoming a better landlord and servicing your client – your tenant.
DO YOU HAVE THE PROPERTY MANAGEMENT SYSTEMS AND ENERGY TO MAKE IT HAPPEN?
- Do you have the emotional and practical energy to support you in landlording over the hold term you are comfortable?
- Do you have the systems in place to manage your rental property on your own?
- Do you have the funds set aside for critical repairs to your rental property?
- Do you have the patience to work with people?
If not, feel free to reach out to us or leave us a comment in this blog. Rental real estate provides opportunities for wealth building, but, you need to have systems in place to make it happen.