Perhaps you are undecided. Perhaps you think that, in 2020, buying for the rental market is a risky prospect.
Whilst there will always be an element of risk associated with being a landlord, there are still many advantages of the buy-to-let market.
Top of the reasons to become a landlord is obviously money. If you are looking for a stable second income, then this is it. If you have a number of properties for rent, you may even be able to quit the day job and make a good income as a landlord.
Perhaps you won’t get rich quick, but there is a good potential income stream in being a landlord.
Hopefully, your rental property is going to appreciate over time. Although it pays to be aware of the fact sometimes a property price can go down over time it is more than likely it will go up.
And depending on the type of property, its condition and, more importantly, the location, it could increase in price very quick.
A lot will also depend on the rental charged and the costs of the mortgage and upkeep of the property. However, your mortgage balance will decrease with every rental check you receive and eventually you can put the money towards building the equity in the property.
Without wishing to alarm anyone, becoming a landlord is a risky business.
When you rent a home out to a tenant, you are making yourself liable for many scenarios. These include litigation (i.e. being sued) and sudden loss of income (rent arrears).
Sadly, dealing with evictions is part of the job. If you are even thinking of buying-to-let, then this is something you should be prepared for.
The chances are you will encounter a tenant who gets into arrears. Sometimes this means pursuing them through the legal system, but sometimes you will be forced to write the debt off.
Before becoming a landlord, you should acquaint yourself with the eviction procedures in your area.
There are many reasons why you might find yourself with a gap in your rental income. It may be that your tenants move out sooner than expected, or break their lease agreement. They might withhold rent.
In the worst-case scenario, they might also trash the property and cause you a lot of expense.
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