While being a landlord may seem like your ticket to being self-employed, there are some pros and cons you should be aware of before committing.
Becoming a landlord tends to cross the mind of many people looking to change career paths. But like any job, there are upsides and downsides. Transitioning from a past career to becoming a full-time landlord is no simple task either. If you’re considering stepping into this field, here are the pros and cons of becoming a landlord to help you get started.
The Pros of Becoming a Landlord
You Become Your Own Boss
One of the main draws that pull people into becoming a landlord is the ability to be your own boss. If you make enough from rent, you can become completely independent and essentially run your own business. For people who crave flexibility in their careers, this is a major advantage.
You Make Nearly Passive Income
Some properties, like single-family units, are relatively easy to manage, and if you plan correctly, you can budget and manage from a distance. Additionally, if you hire a property manager to take care of your property, it makes everything even easier, and you can essentially collect rent as it comes in.
You Qualify for Tax Deductions
Within reason, almost every expense you spend on your property is a business expense and can be tax-deductible. This means that you can update and repair your property at little to no cost to you, which is a great way to keep tenants coming back.
It’s a Job for Extroverts
If you thrive off of working with people, being a landlord can be a great career move, as you’re dealing with people all the time. In general, you can use your talents when you’re a landlord. Whether you’re a people person, plumber, painter, or more, you can use these abilities to cut costs.
The Cons of Becoming a Landlord
It Takes a Lot of Time
Owning and managing property is a commitment, and it takes a lot of attention and planning, especially because you will be your own boss. Additionally, learning all the necessary laws, keeping up with responsibilities, and marketing your property are all time-consuming tasks.
There Will Be Unexpected Costs
No matter how much you plan, unexpected costs will come your way, such as maintenance and legal fees. While you can budget in a way that gives you emergency money, there will undoubtedly come a time when you’ll have to deal with an emergency.
You’ll Have To Deal With People You May Not Like
While it’s critical for landlords to learn how to select the right tenant, eventually, you’ll run into someone you don’t get along with, no matter how much tenant screening you do. Because of this, you’ll have to practice setting your emotions aside and dealing with conflict in a professional manner.
Is Being a Landlord Right for You?
If you have the time and resources available for you to become a landlord, you should go for it. The good news is that once a lease is up, you don’t have to rent the property out again if you don’t want to, and you can decide the job isn’t for you.
But knowing the pros and cons of becoming a landlord is critical because if you’re not a people person, this job may not be for you. This is especially true if you don’t have the energy or time to commit to learning what it takes and sticking to it.
from Career Tool Belt https://ift.tt/mSbugfd
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