CHAPTER 1: IS BEING A LANDLORD RIGHT FOR YOU

On the surface, being a landlord seems to be an easy task – you simply find tenants for your property and collect your monthly rent, right? Not quite. In reality, it’s a little more complicated than that. Being a landlord requires you to wear many hats – you may have to fix a leak one day, paint the apartment when your tenant moves out, or even act as a debt collector if your tenant doesn’t pay their rent.

 

Some other disadvantages of being a landlord are:

• Potentially having to evict a tenant. This can be a lengthy, draining, and stressful process for everyone involved.
• Staying up to date on landlord-tenant laws. You need to have knowledge of the current laws that govern your relationship with your tenants.
• Potential lawsuits. There could be situations where a tenant may civilly sue a landlord.
• Costs associated with unexpected repair and maintenance. Sometimes things break when we are least prepared. You have an obligation as a landlord to fix these things for your tenant promptly, even if you may not necessarily have the funds to do so right away. You need to plan for the unexpected as a landlord.
• Costs associated with the property being vacant. Your property may become vacant sometimes. You need to ensure you have the funds to be able to make mortgage payments and to cover any other expenses related to your rental property from the time it is vacant until you find a new tenant.

 

While being a landlord can be like having a second job, if you are willing to put the work in it can be quite rewarding. The biggest advantage is the passive income generated from owning and operating a rental property. While this income is not as passive as you may think (if you are a responsible landlord who looks after your tenants), you will still be getting paid for virtually doing nothing but owning your property, and your tenants will be the ones paying down your mortgage, as well as most other expenses related to your investment property like condo fees and property taxes, through their rent payments.

 

If you are willing to put the work into maintaining your property and ensuring your tenants are happy during their stay, you will avoid most of the headaches associated with being a landlord. Happy tenants are more likely to keep your property in excellent condition and are less likely to want to move out, saving you time, money, and the hassle of finding new tenants.