Knowing the Disadvantage of Becoming a Landlord

From Buyincomeproperties.com

Landlord
Knowing the Disadvantage of Becoming a Landlord
By
Jul 12, 2006, 18:58

The reason that most people do not invest in real estate and then rent it out is because they have heard all the horror stories of becoming a landlord. And even though there are a lot of reasons to not become a landlord, you must also keep in mind that many of the things that you hear are blatant exaggerations.

One of the biggest disadvantage of becoming a landlord is the fact that you will be responsible for the upkeep on all of the units that you are renting out. This may be a large problem if you are renting a property that is older, and is barely passing code. But the best way to avoid this is by only investing in properties that are not going to cause you a lot of problems. Even though it is impossible to avoid every issue that may arise, you can at least cut back on them by renting out a property that has quality amenities that will not need fixed often.

Another drawback of becoming a landlord that many people are afraid of is not getting paid on time. Remember, a lot of landlord depend on incoming rent checks to get by each month. If they do not show up on time, or worse yet at all, you will be put in a bad position. To go along with this, becoming a landlord also means that you also have to turn into a collector. This means that anytime somebody is late with their rent that you need to hunt them down and try to get the money that is owed. Sometimes this is as easy to do as making a phone call, but in other cases it may take you weeks in order to get what is yours.

When becoming a landlord you are also responsible for the safety of your tenants. This does not mean that you have to watch what they do 24 hours a day, seven days a week, but it does mean that you will be responsible if something happens to them due to your negligence. This is why it is very important to know what you need to do as a landlord, and follow the rules exactly who they are outlined.

There are drawbacks to becoming a landlord; that has never been debated. But the main problem is that a lot of people think that becoming a landlord is nothing but bad news. Again, this is due in part to a lot of the myths that surround this industry.

The best thing to do if you want to become a landlord is to know what you are getting yourself into. This is best done by researching the industry, and talking others who are in the know.