Running a family is an expensive endeavour, and as such, it’s common for many parents to seek out ways of making some extra money.
One approach that some consider is becoming a landlord and renting out a property to someone else. You’ll then receive rent every month and be able to use part of it to pay the cost of the mortgage.
This means that you will not only receive money each month but also be making a long term investment in a property that could provide a high return on investment in the future.
Often, you can get a buy to let mortgage, which means that you can easily find a funding option to help you start out.
Being a landlord isn’t as easy as it seems, and it might not be the perfect option for every family. Here are some of the factors you need to consider when thinking about becoming a landlord to make extra money for your family.
Property Management Is Either Costly Or Time Consuming
When renting a property, tenants, both commercial or residential, expect a certain level of service. For example, if something significant, such as the boiler or an appliance that comes with the property, breaks, then they will require immediate assistance. Additionally, you need to conduct inspections to make sure that your tenants are abiding by your rules and keeping your property tidy and well-maintained. All of this can be time-consuming if you do it yourself. If you outsource this work to a property management firm, then you could save time, but this will cost you considerably more money, which will eat into your potential profits.
There Are Many Regulations To Abide By
If you’re managing the property yourself, then there are many regulations that you need to abide by to ensure the safety of your tenants and the legality of your enterprise. For example, every rented property needs an Electrical Installation Condition Report (EICR). These reports must be conducted by a trained electrician, and as such, you need to review the EICR cost and factor this in when making your decisions and budgets. This is just one example of the many necessary costs that are associated with being a landlord, so you will have to consider these when deciding if this is the right choice.
Conclusion: It Depends
Ultimately, becoming a landlord has its advantages and disadvantages. It takes a lot more work than you think, so it’s not a decision that should be taken lightly. If you want a quick and easy side-hustle to help you make a few extra pounds, then consider another moneymaking option, such as becoming a rideshare driver or doing some freelance writing. However, if you want to make a long-term investment in your family’s future and are prepared to put in the time and effort it takes to make even a small property portfolio profitable, then this could be a great way to earn extra money and support your family. Take the time to understand the intricacies of becoming a landlord and work out if it’s the right option for you.