Becoming a landlord can be a daunting prospect but it doesn’t have to be. Here are six things that any potential landlord should consider before taking the plunge. 

Make sure the property is in working order

Before putting a property up for lease, it's the owner’s responsibility to assess the condition of the property. The house should not require any renovations once it's on the market. Similarly, all stoves, ovens, air-conditioners and other appliances should be all be in working order.

There are no ‘business hours’

A landlord does not have specified working hours. Large jobs will often appear out of the blue. For this reason, a landlord is required to be extremely flexible in terms of working hours. Having said that, there could be significant periods that do not require very much of you.

Understanding the legal obligations and rules

There are many legal responsibilities and rights that a landlord will have to become familiar with in order to keep their rentals above-board.

The legalities surrounding rental tenancies vary from country to country and from state to state.

Ensure you become familiar with the correct legalities for your area.

Income

The income of a landlord comes from their tenants’ rental payments and this can be unreliable. Tenants may be late on payments. 

If the property requires maintenance, a large portion of your earnings may be channelled towards the repair fee, leaving you with limited earnings during this period. 

It is recommended that any landlord who depends solely on their rental income should have a contingency plan in place for when the unexpected happens.

Tenants

Tenants may contact their landlord frequently about seemingly insignificant things (a slightly leaky tap or a squeaky floorboard). Or tenants may rarely contact their landlords, either attempting D.I.Y. fixes themselves or ignoring issues all together. 

Be sure that you know enough about your potential tenants before allowing them to sign a lease.

Rigorous initial screening processes can help reduce problems. 

Choosing the right property management agency

If a landlord wants to lighten their load, employing the help of a property management agency is a viable option. To help you know what to look for when it comes to finding the right property manager for you, check out our article: Five things to consider when choosing a property management agency.