Are You Cut Out To Be a Landlord?

Landlord_020116This may be one of the best times to buy real estate for investment purposes and rent it out to provide income. More people are renting and the demand for rental units is steadily growing.

However, being a landlord is not easy or for the faint of heart. Depending on the number of tenants you have, the work involved can be very significant. As a landlord you have to screen tenants, make repairs, respond to tenant complaints, and collect rent monthly.  And while unfortunate, there is always the possibility of tenants being late with rent, or not paying it altogether. Evicting a tenant can sometimes be a long and expensive process.

Are you good with people? A good judge of character? Are you handy enough to make at least some small repairs yourself? Do you have a network of contractors and repair people who will respond quickly and not be overly expensive? Do you have the time to advertise for tenants and screen them thoroughly, check references, past employers and landlords? You can always farm out these chores to a property management company, but that will substantially cut into your profit margin, or maybe eliminate it altogether.

As long as you go in to being a landlord with your eyes open, and having created a good, strong lease agreement for your tenants, buying rental property can be a good investment and a profitable enterprise.

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