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?
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.