4 Reasons To Become A Landlord

If you are looking for a way to earn some extra income on the side, one option is to become a landlord. Buying a property and letting it out to tenants will allow you to receive a monthly rental payment to supplement the income from your day-to-day job. It is also possible to own multiple properties and pursue a full-time career as a landlord.

It will require some initial expense and hard work, as you’ll need to purchase a property and go through all the legal admin and paperwork before you can rent it out. You’ll also have to find tenants and make sure the house is habitable before they move in. But once this has been carried out, the rest is relatively straightforward. So if you’re not sure whether this path is right for you, here are five great reasons to become a landlord.

Be your own boss

The best thing about owning a rental property is the opportunity to be your own boss. You are in total control of the building, and you can decide how to decorate it, how much to charge for rent, and which tenants to take on. You have no employer breathing down your neck and can take on as much or as little responsibility as you like. If you don’t fancy managing the property yourself, you can simply hire a property management company to take on all the everyday tasks like maintenance and finding new tenants. This will give you more freedom to focus on other areas of your life.

Earn a passive income

When you become a landlord, you will see a consistent stream of income trickling into your bank account each month. Ideally, this will be enough to cover the monthly mortgage payments with a little extra on top for you. This passive income can be a great supplement to a full-time job, and it requires very little extra work from you to earn it. You will of course be responsible for ensuring the condition of the property for your tenants. This will include tasks such as organizing gas safety checks, lift servicing, and maintenance or repair of any household appliances. It’s important to note that you will have to cover the cost of these as well.

Tax savings

Owning a rental property comes with many tax benefits. You can deduct a huge number of expenses from your annual tax bill, such as the interest on your mortgage, depreciation, and all repairs and servicing. You can also deduct insurance premiums and even home office expenses if you conduct landlord duties from home. This allows you to keep more of your hard-earned money.

A reliable investment

Real estate is one of the most reliable forms of investment. Even if you can’t find any tenants to live in it, you still have a valuable asset in your possession that is likely to appreciate in value over time. Just make sure you pick a house in an up-and-coming area and consider making improvements to increase its value.