Rental properties are a popular investment for many reasons! Real estate can be a great source of income, especially if you choose the right investment property in the right rental market.
However, new investors are often afraid of becoming full-time landlords, which is understandable because investing always comes with some risks, even in the best real estate markets. But for many people, being a full-time property investor is very financially rewarding.
If you’re new to property investing or just want to increase your rental revenue by becoming a full-time landlord, keep reading! This article will outline why and how becoming a full-time landlord can benefit you and how to transition into this lucrative career.
The Benefits of Being a Full-Time Landlord
You Own Your Time
Unlike most jobs, which have rigid hourly schedules you need to follow, being a landlord allows you to set your own schedule based on your needs. This flexibility has inspired many investors to take on real estate endeavours full-time.
In addition to having control over your time and schedule, you can enjoy a flexible lifestyle without worrying about reporting to a boss—because you’ll be your boss! You can go on vacation whenever you want to, set your working days and hours according to your preference, and never miss out on important family events.
Working 9 to 5 provides a stable income and a relatively regular schedule, which a lot of people enjoy. However, traditional jobs don’t afford many opportunities to increase your revenue. When you own a rental property, you can generate generous returns and earn a lucrative income, especially when you invest in the right market.
You can also have some control over how much money you make based on how well you manage your rental property. By providing better amenities for your tenants, you can charge more. Improving your rental unit through strategic renovations will also increase its value over time!
Full-time landlords can take advantage of a number of tax benefits! Owning a rental property is like operating a business, so you can deduct operating expenses from your taxable income. Some of the most common deductions include property deductions, transportation expenses, and other costs related to setting up a home office.
Tips for Becoming a Full-Time Real Estate Investor and Landlord
Investing in rental properties can be more rewarding than having a full-time job. If you have started investing in real estate with one or two rental units, you may already know how managing a rental property works.
However, being a full-time landlord is different from managing a rental property part-time. The following tips will help you transition into a career as a full-time landlord and protect your investment.
In general, investing in real estate is a lucrative source of income. However, it may take months or years to see a return on your investment. To prepare for life as a full-time landlord, you must ensure that you’re financially ready and have saved enough money to sustain yourself while you’re just starting out.
Ideally, your savings should be able to cover at least three to twelve months of your living expenses to ensure you’ll live a comfortable life after quitting your job. To ensure your financial safety, ensure this money is easily accessible in a savings account and not tied to any form of long-term investment.
Remember that you will also need extra cash to build your investment portfolio, so be sure to factor that into your budget.
Build Your Portfolio
If you already own a rental property or two, you’re off to a great start! But to become a successful full-time landlord, you must gradually build your portfolio to improve your income. The more investment properties you own, the more monthly income you will be able to generate.
However, buying many properties at once can be a critical mistake. Try to test the waters first to see if you want to be a full-time landlord long-term. Once you’re confident in this decision, you can add more properties to your portfolio and scale your business sustainably. Just be sure to choose the right rental market and find properties that have the potential to earn lucrative returns.
Create a Professional Network
One of the best ways to succeed as a property investor and full-time landlord is to build professional relationships with industry experts. For instance, connecting with real estate agents and brokers can help you find investment properties.
Talking with other rental property owners can also allow you to learn from other people’s experience and gain expertise in specific markets. Additionally, getting to know the best property managers in your area will help you determine which company will serve your needs best if you want to earn more passive income.
Hire a Top-Tier Property Management Company
Even if you’re already a full-time landlord, you can turn your earnings into passive income by hiring a reliable property manager who will handle the management side of your rental business.
Many landlords experience reduced stress and enjoy more free time when they hire a property manager. With a property management company on your side, you can focus more on improving your portfolio and building wealth.
Being a full-time landlord is an excellent choice if you want to have more flexibility and control over your income. Follow the tips mentioned above to help you transition smoothly from being a part-time to a full-time rental property owner. If you want to maximize your ROI and experience stress-free property management, reach out to the expert team at Taylor Street Property Management today!