Owning a rental property is a great way to earn a steady income every month. When the landlords first get started, many of them manage their rentals on the side. However, as time goes by, many investors quit their jobs to manage their rentals full-time, living comfortably off their rental earnings.
Quitting your job to become a full-time landlord can seem challenging. Our team of experts at Dawson Property Management have written this article to help you make a smooth transition from a part-time landlord to a full-time landlord.
Keep reading for tips for transitioning from part-time to full-time landlord!
The Benefits of Being a Full-Time Landlord
Rental properties are a great long-term investment. Moreover, they can help you grow your wealth in the short term as they allow you to earn a steady passive income while helping the growth of your real estate portfolio.
Other benefits of being a full-time landlord include:
Lifestyle Flexibility
As a full-time landlord, it is not necessary to have a fixed schedule which means you can adjust your work hours according to your time. Also, once you get used to being a landlord, you’ll find yourself with plenty of free time which you can use for travel, hobbies and other leisure activities.
Financial Freedom
Have you ever dreamed of having complete control over your work life? Well, as a full-time landlord, you have the autonomy to make decisions without answering to anyone else. This means that all your hard work will be beneficial for you and help you grow in life.
Tax Benefits
Rental property owners can enjoy many tax benefits including
deductions on insurance, property maintenance and renovation costs. Additionally, as a full-time landlord, you can tap into many self-employment benefits to help recover some of the money you’ve invested in your rental business.
Portfolio Diversification
Investing in rental properties is a great way to diversify your real estate portfolio. Additionally, rental properties are a great investment as the need for rental accommodations has grown increasingly in recent years.
How to Go from a Part-Time to a Full-Time Landlord
Becoming a full-time landlord comes with many benefits but also includes some risks. These risks may include potential property damages or issues which can put a dampen on your earnings.
So, consider the pros and cons to determine whether managing your rental full-time is the way to go. Here are some great tips to help you make the transition from part-time landlord smoother!
1. Save Six Months of Your Regular Expenses
Leaving your job to manage your rental property full-time can take a significant toll on your finances. After all, it takes some time to adjust to having your rental earnings as your one and main source of income.
To make the transition easier, it’s recommended that you save an adequate amount of money before quitting your previous job. A good rule of thumb is to save the amount you normally spend on bills and expenses in six months. This money can be a safety net you can use if an emergency ever arises.
2. Assess Your Commitment Level
Becoming a full-time landlord is a huge commitment, making it important that you determine whether you’re ready for it or not. It is essential to access that you have the time and energy to handle the increased workload.
3. Invest in Several Rental Properties
The rental earnings of one property might not be enough to manage your expenses. That’s why it’s important to grow your
real estate portfolio by having at least two or three rentals before taking the lead to full-time landlordship.
This way, as your rental income will grow, it will make it easier for you to earn a good income from rent proceedings. Moreover, having more than one property will ensure you still make money even if you’re having trouble finding new tenants or
any unexpected expenses.
When growing your portfolio, it’s important that you do it gradually. Plus, it’s crucial that you invest in suitable properties according to the property value and the real estate market trends.
4. Connect with Other Landlords and Investors
Learning how to successfully manage a rental property can be a steep learning curve. Although there’s no straight path to becoming a full-time landlord, talking with others with the experience can be beneficial.
You can learn plenty and avoid common mistakes by connecting with landlords, real estate investors and industry professionals in your area. They can not only share their experiences and give you advice but can also offer support during your transition to becoming a full-time landlord.
5. Work with a Reliable Team
Becoming a full-time landlord doesn’t mean doing it all by yourself. It is advised to have a list of reliable contractors you can contact in case of an emergency.
Our team of experts at Dawson Property Management can help you with anything from
marketing your rental and screening tenants to dealing with maintenance, property inspections, and repairs.
Bottom Line
Becoming a full-time landlord is an advantageous transition filled with its own set of challenges. You can easily transition to managing your rental full-time by creating a savings fund, growing your portfolio and working with trusted professionals. This way, you’ll be able to make the most out of your rental investment and enjoy a life of financial freedom!
Our team of experts at
Dawson Property Management can help you easily transition from part-time to full-time landlord in no time. Contact us today to learn more!
