5 reasons people choose to become a landlord
Our Senior Property Investment and Market Advisor, Rhys Owen, provides us with 5 common reasons why people decide to walk down the path of becoming a landlord.
Estimated reading time: 3 minutes.
Being a landlord can be a lucrative and rewarding career, but it's not a decision to be taken lightly. There are many factors to consider before you become a landlord, including financial stability, your property management skills, and a deep understanding of the local rental market.
In this article, we'll explore 5 common reasons why people become landlords and what it takes to succeed in this field.
1. Financial stability
One of the most common reasons why people become landlords is financial stability. Renting out a property can provide a steady stream of income that can supplement or even replace a full-time job. With the right rental property, landlords can earn significant profits while also building long-term wealth through property appreciation.
2. Passive income
Many people also become landlords to earn passive income. Unlike a traditional job, rental income can be earned without having to actively work for it. Once a property is rented out, landlords can sit back and collect rent payments without having to do much additional work. Of course, landlords must still be prepared to handle any emergencies or issues that arise with the property or tenants.
3. Diversification of income
Another reason why people become landlords is to diversify their sources of income. By owning a rental property, landlords can create an additional stream of income that is separate from their primary source of income. This can provide a financial safety net in case of job loss or other unexpected events. Additionally, owning a rental property can provide a hedge against inflation, as rental income tends to increase over time along with inflation.
4. Investment opportunity
For some people, becoming a landlord is a way to invest in real estate. Owning a rental property can be a smart investment strategy that can provide long-term financial benefits. Property values tend to appreciate over time, which can result in significant returns for landlords who hold onto their properties for the long term.
Read: Our guide to property investment
5. Flexibility
Becoming a landlord can also provide a great deal of flexibility in terms of schedule and location. As long as landlords have a solid property management plan in place, they can manage their rental properties from anywhere in the world. This can provide a great deal of freedom for those who want to travel or work remotely.
Challenges of being a landlord
While there are many benefits to being a landlord, it's important to acknowledge the challenges that come with the role. Managing tenants and maintaining a property can be time-consuming and stressful, and unexpected issues can arise at any time. Additionally, being a landlord requires a significant amount of financial investment upfront, including the cost of purchasing a property, making necessary repairs and renovations, and covering ongoing expenses such as property taxes and insurance.
Read: Landlord guide to renting
People become landlords for a variety of reasons, including financial stability, passive income, investment opportunities, and flexibility. However, becoming a landlord also comes with its own set of challenges, and it's important to carefully consider all the factors before making the decision to become a landlord. By doing so, aspiring landlords can ensure that they have the skills, resources, and knowledge needed to succeed in this exciting and rewarding field.
If you're a landlord or considering becoming one in Cardiff and are looking for guidance on finding the perfect rental investment property, CPS Homes can help. Our team of experts can provide you with valuable insights and recommendations on which properties are best suited for rental investment in Cardiff. Don't hesitate to reach out to us by calling 02920 668585, emailing enquiries@cpshomes.co.uk, or visiting one of our three Cardiff branches. We are here to assist you in finding the right rental property that fits your investment goals and lifestyle.
The information contained within this article was correct at the date of publishing and is not guaranteed to remain correct in the present day.
