When searching for the perfect home business, there are many conventional options that you’re likely to explore. You’ll think about offering services via freelance contracts, or perhaps even making and selling your own jewelry– both of which are good options.
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However, there is one option that is a little “outside the box”, but then again, that can be a positive thing. If your circumstances can allow for it, you will want to consider life as a residential landlord– it might just be the money-spinning opportunity that works best for you.
“Don’t landlords have to own an additional property?”
Yes, and this tends to be the sticking point that stops many people exploring this option. However, investing in real estate is always a good move, and becoming a landlord is a way of generating money from your investment right from the start.
Buying a buy-to-let property is one of the best ways to secure your finances both now and in the future. You can see if this will fit your budget by using this bridging loan calculator, which will help you calculate the rates and repayment costs before applying for a loan.
“What does being a landlord involve?”
The beauty of life as a landlord is how very varied it is; you can bend the role to make it suit you. If you want to be heavily involved, then you can take on all the tasks of a landlord yourself– you can find new tenants, arrange contracts, market the property, and so on and so forth.
On the other hand, if you’re looking for a way to raise cash without a huge time commitment, then you can outsource all of these tasks to a residential property management company, who will maintain and care for your property on your behalf. The choice is yours– hands on, hands off, or something in between.
“How much can landlords make?”
You will set your asking price for your property, so you are in control of this aspect. Most landlords set their rent at a price dependent on the amount they are paying on the mortgage, and then a sum on top that functions as their profit. This is known as the yield, and it can be as high or as low as you feel comfortable with– provided you can find a tenant who agrees to your prices, of course!
“How is being a landlord a home-based business?”
You don’t need an office to be a landlord, you don’t need to commute, you don’t have a boss– in essence, life as a landlord is a very typical home-based business. While you won’t have daily tasks to accomplish (especially if you elect for property management), you will have an income on a monthly basis without having to spend hours of your life in an office.
“What are the negatives to life as a landlord?”
It’s important to know the full picture of becoming a landlord, and the simple truth is that owning a rental property has its pros and cons. The pros are listed above, but it’s also important to acknowledge that you may experience issues– bad tenants, lack of tenants, or expensive property repairs are some of the most common issues. Depending on where you live, there are some laws that make it difficult for the landlord. You may want to talk to other landlords to get their expertise as well. But you can easily navigate this challenge by learning more about tenant screening and find the perfect renter for your property.
With that said, all home businesses have their downfalls, and there is nothing outstandingly worrying about owning a rental property when compared to the general level of risk.
If you think you may be interested in becoming a landlord, investing in your future, and generating cash in the present, then it’s worth talking to a bank about the possibility of a buy-to-let mortgage. It’s a big step, but it might just be the business idea you have been waiting for.
This is a contributed post.
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