Owning rental property is a great way to make extra money and provide a valuable service to your community. But being a landlord isn't all rainbows and butterflies. In fact, there are some unsaid pitfalls that can come along with being a first-time landlord and investor. Here are a few things to keep in mind before you take the plunge into the world of property ownership!
1. You're now responsible for someone else's home!
As a landlord, you're responsible for making sure your tenants have a safe and comfortable place to live. This means keeping up with repairs, maintaining the property, and being available to answer questions or address concerns. If you're not ready to handle this level of responsibility, then being a landlord might not be right for you.
2. You might have to deal with some difficult tenants...very difficult!
Not all tenants are created equal. Some will be great and easy to work with, but others can be real nightmares. This is just something that comes with the territory, so be prepared for the possibility that you might have to deal with some difficult tenant situations.
3. You'll need to stay up to date on changes in the law.
There are always new laws and regulations being passed that affect landlords and investors. It's important to stay up to date on these changes so that you can avoid any penalties or fines. Many states also have specific landlord-tenant laws that you'll need to familiarize yourself with before renting out your property.
4. Rental properties can be expensive to maintain.
Another thing to keep in mind is that rental properties can be expensive to maintain. There will always be repairs that need to be made and unexpected expenses can pop up at any time. If you're not prepared for these expenses, they can quickly eat into your profits.
5 Being a landlord takes time and effort.
Lastly, being a landlord takes time and effort. You can't just buy a property and sit back and collect the rent checks—you need to be actively involved in the management of your rental unit(s). This includes screening tenants, collecting rent, handling repairs, and dealing with any other issues that may arise. If you're not willing to put in the time and effort required, then being a landlord probably isn't right for you.
Overall, there are some unsaid pitfalls of being landlords or first-time investors that people don't often think about beforehand! Although it is a great way to make extra money, provide a valuable service, and build equity; It is important to remember that it takes time, effort, responsibility, and utilizing different capabilities such as empathy & repair skills! Property owners should research their state's specific landlord-tenant laws as there might be some compliance changes that were recently made! Good luck investors!!