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Could you be a landlord in the future?

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Could you be a landlord in the future?

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Like many parents in their 30s and 40s my long term financial priority is paying off the mortgage rather than saving for retirement. I have little faith in pensions and the stock market, and have seen the last decade being a sorry state of affairs for savers. I know we are supposed to put something away for the future, but with incomes squeezed in the here and now, it can be a tricky juggle for many – what to do for your financial wellbeing in the long term?

Could you be a landlord in the future?

Being a landlord is something that I have considered, and as my daughter is in her teens and hurtling towards the year when she will finish her education at home and possibly go away to university, it is on my mind more and more. Perhaps it would be a good idea to buy an investment property for rental in whatever town she chooses to study in, which would give her a roof over her head in the time she is away from home and after she leaves uni, would provide a rental income from other students in the area?

When it comes to finances, planning is often key – the more you can prepare in advance, the better, so as we are a few years away from a big investment like this, now is when I’m doing my research. Homelet is a website that provides insurance and support to the UK’s private rental sector, and I’ve been on their website to learn more about what is involved with being a landlord. As well as advice and insight from reputable experts in their free-to-download ebook packed with useful information, you can also get landlords insurance from HomeLet too.

Property is an area that I feel I understand in a way that I don’t with the stock market. It is tangible, I can actually touch it! My husband is a builder and has more than 20 years experience in building and renovating homes, so we have all the trades we need to hand to get a property up to scratch and maintained. Plus, I enjoy the business side. Property is not just a passive way to make money, it is a business and has to be treated as such. There are void periods when you’re between tenants and you have to be good at dealing with people of all temperaments, ages and situations, to maintain a positive relationship as landlord and tenant. There’s a strategy involved in selecting the right property to buy – you have to research the area and other rentals in the locality to determine what your possible rental yield could be, and you also need to have money put aside for a contingency, repairs and emergencies!

The only thing that is bugging me slightly is; would it be better to be a landlord in my own area where I live first? This way I am on the doorstep if something needs attending to – rather than hundreds of miles away from the property where my daughter is studying at university? I think it may be wise to do my learning as a landlord with something closer to home, so maybe being a landlord will be in my future sooner than I think!

Have you ever considered becoming a landlord? Do you have any experience or advice if you are currently in this position? Do share in the comments!

This post was brought to you in association with HomeLet.

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Comments to Could you be a landlord in the future?

  • I struggle to pay for and look after one house, let alone two!

    Jen 28th October 2016 10:17 am Reply
    • It’s not something that appeals to everyone but it is something I have long considered. We’ll see what the future holds.

      Nadine Hill 30th October 2016 2:44 pm Reply
  • Because we moved back to my home country I am happy to say that we don’t have a mortgage so no payments for us. But in the future who knows…maybe one day we will have a property to rent as i think it’s a good way to make an extra income.

    Otilia 28th October 2016 12:17 pm Reply
    • That’s a lovely situation Otilia – well done! Property is a great way to make an income but obviously it is a lot of work too.

      Nadine Hill 30th October 2016 2:43 pm Reply
  • This is something I am seriously I’m considering at the moment to be honest. I think it makes sense to invest in property and I want to see if it’s worth my while doing it so I’m having a look around at the moment x x

    Cass@frugalfamily 28th October 2016 12:25 pm Reply
    • It’s always been on my back burner too. I’m not actively looking yet but just starting to research. x

      Nadine Hill 30th October 2016 2:41 pm Reply
  • I was a landlord with another house we owned and quite honestly it was a nightmare. We had 3 tenants and 2 of them did a runner without paying the rent. We had a management company looking after the house as it was some distance away from where we lived but they too didnt do a good job. They didnt do the 6 month house inspections that we had asked for and we paid them £100 a month ! I think it makes sense to invest in property but I would be cautious about doing it again. I would probably prefer to go into holiday rental rather than long term lets as I think you are less likely to get ripped off by holiday makers. They pay the money up front and they are less likely to trash the house as they are only in there for a short time. And of course if you buy a holiday rental then you can use it yourself !

    Susanna 28th October 2016 5:11 pm Reply
    • It’s good to get your perspective as a landlord – thank you Susanna. It is worrying – the thought of tenants doing a runner or trashing the place, we all like to think that others would be as conscientious as us when renting but sadly this isn’t always the case. But I like your holiday let idea. Something to think about.

      Nadine Hill 30th October 2016 2:40 pm Reply
  • I would consider this if I could have a property local to me and I could manage the process but I couldn’t face paying fees to an agency. Mich x

    Michelle Twin Mum 28th October 2016 7:23 pm Reply
    • Hi Mich, I wouldn’t want to pay agency fees either. Maybe at first to do the tenant checks and credit checks etc but not for the long term maintenance. We’d do that ourselves. Thanks for commenting. x

      Nadine Hill 30th October 2016 2:45 pm Reply
  • We’ve thought about this before as my husband used to be a mortgage broker. It might be something we do in the future.

    Kate Williams 1st November 2016 6:46 am Reply
  • I wish we could afford to buy a property for my teens to rent – my dad did that for me when i was younger and it really helped me as the rent was affordable and he made a profit too

    Kara 1st November 2016 12:17 pm Reply
    • Ooh that is a win-win situation! I bet your dad was pleased with his decision.

      Nadine Hill 1st November 2016 12:49 pm Reply
  • Hi Nadine, have taken the plunge and invested in a property close to home last year. Our eldest is on the cusp of going to uni and we wanted to have somewhere he could rent when he finishes and moves back if that works for him, in the meantime it is making a small profit for us and hopefully growing in value. Like all investments it is risky but it is more tangible than others . Will check out homelet. Thanks for the review.

    Jo (Mother of Teenagers) 4th November 2016 1:26 pm Reply
    • Sounds like you are doing what I am thinking of – I’m glad it is working out for you, it is great to hear your experiences.

      Nadine Hill 4th November 2016 5:07 pm Reply

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