Finding a Property to Landlord

    Do you dream of becoming a landlord? Do you want to dive into the exciting world of real estate and become the next Donald Trump? Before you get ahead of yourself and start searching for your first investment property, you need to think long and hard about what goes into being a landlord. While this may sound simple on the surface, it is anything but that. This is not meant to stop you from moving forward, but instead to show you that there are both pros and cons to buying rental property. The potential to earn a lot of money should not cloud your vision.

    Here are five issues you may encounter once you decide to become a landlord:

    1. You will be faced with major problems from time to time. This can be anything from a leaking roof to a broken furnace to a flooded basement. Just like the home you live in, you never know when something will go wrong and a major repair bill will come your way. As a landlord, you want to avoid major problems at all costs, but realize that you can only escape for so long.

    2. Dealing with minor problems that the tenant simply doesn’t want to fix on their own. How would you feel about having to take time on a Saturday morning to change a light bulb for one of your tenants? While this may sound silly, there are tenants who will call you with every last problem. Do you have the patience to deal with such people?

    3. You have no choice but to keep your property 100% safe at all times. If a tenant is injured on a property that you own, there is a good chance that you could be sued. Sure, you have home insurance, but you always have the duty to keep your property properly maintained and in good working order. By keeping your units safe, no matter what it takes, you greatly decrease your chance of trouble in this area. This calls for regular, preventative maintenance.

    4. Perhaps the most important task you will face as a landlord is collecting rent. If you are lucky, your tenants will always pay in full and on time. Unfortunately, you cannot expect this to be the case month after month. At some point, you will probably have to be proactive in collecting rent. If you want to get paid, you may have to take the initiative. Do you feel like being a bill collector from time to time?

    5. The uncertainty of what will come next. The only constant in the life of a landlord is that there is no constant. One month you may get paid on time and have no repairs. The next month this could all change. If you are going to excel as a landlord, you must be willing and able to adapt on the fly.

    Now what do you think? Buying rental properties is a great way to make money. Just remember that being a landlord is not all fun, games, and money. You will be faced with adversity from time to time. We don’t recommend you buying rental property with large amounts of debt. The financial risk factors that go into buying a rental property with little money down are not worth it. You could easily foreclose on the property if your renter stops paying and you have trouble finding another tenant. Buying rental property should be an investment option you consider once you’ve already achieved a certain level of financial independence.

    Are any of you guys or gals landlords? If so, do you have anything to add to the list above?