// Becoming A Landlord: Portfolio-Building Or Lodger Intake?

The two most foremost stereotypes of being a landlord are, you earn quite a bit of money for relatively low workload and anyone can be a landlord if they wish. The first one isn't trying while the second one is. Anyone can be a landlord in theory, but in practice, it's much harder than you think. Corrections, you do make quite a bit of money, but it's not going to be easy. You have to approach the title of landlord like a business. You are essentially a property manager and a hospitality manager in one. You’re looking after properties other than your own, so you’re almost on call 24/7 if something goes wrong. However, if you have great people management skills, working with new clients will be exciting and rewarding. Here’s who you can begin.

It's a business venture
What if you don’t have a property to rent? The simple answer is, you have to invest in a property one way or another. You do have a plethora of options, with property investment loans being on top of the pile. Usually, financial institutions will give you this type of loan if you can show a promising plan. If your plan is to buy a property, fix it up in order to make it into a rental, you’re more likely to be approved. However, after you have established your property, you may want to do the same again and again. This is common for those that want to build a portfolio of rental properties. In that case, a hard loan won’t cut the mustard, it will need to be a long-term loan. Consider the pros and cons of hard money vs long term rental loans. The Visio type of loan is designed for long-term purposes, allowing you to focus on fixing and improving multiple properties at once. Hard money will restrict you to just one property. 

Having a lodger
Many people don’t have the funds or the confidence to get into the deep end of property marketing by becoming a landlord. Rather, they would start off small and see if being a landlord is really to their liking. If you have a spare room in your house, you can offer it up to the renting market. You would be offering the room to a lodger, which is not the same as a tenant. You have more rights and control in the contract if you’re taking on a lodger. Seeing as it's your own property where you live, you can set the rules to your liking. If you ever need to increase the rent price due to an increase in your bills, you can do so with relative ease. The contract is flexible and to your discretion. With this in mind, this is a great way to get your foot in the door and become a landlord with a steady stream of cash coming in every month.

Being a landlord is hard work at times, but once you iron out the kinks you can form great relationships and make quite a lot of money. Treat it like a business venture and not a personal project to get the most out of it. 

// this contributed post was written for this charming life.

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HEY! Thanks for dropping by. xo KB