The Reality of Being a Landlord

Owning property and being a landlord is something I have always wanted since I was a child, so, when the opportunity came to purchase some real estate and become a landlord I jumped at the chance. At first I was naive and wish I would have taken more time out to research exactly what I was getting into.

Being a landlord or landlady is by no means easy, and it is not your standard 9-5, in fact it is quite the opposite. I have found that I am always on call, the paper work is never ending and to make matters worse some of the landlords I have to deal with on a daily basis make me at times regret wanting to be a landlord. However, even though I have those bad days where tenants just don't pay, it is worth it. I mean becoming a landlord is something that you have to be in for the long haul. To be a successful real estate landlord you have to have people skills, patience and money, as I have found out and learnt the hard way.

As a landlord you have to pay for checks on tenants, you have to insure your investment and you have to make sure you actually make money from your real estate. I have found that making money as a landlord does not happen until you are least 12 months in. This is because the first 12 months I was naïve and unaware of the costs associated.

A lot of people ask me what it is like being a landlord, and my answer is simply hard work! Lots of people and potential investors think it's a quick way to make a few bucks, but honestly it is far from it. You really have to build up a good portfolio, a good variety of clients and tenants to make it worthwhile.

The reality of being a landlord is different from the day dreams I had as a child, for example, I envisaged tenants paying up on time and treating my properties with respect (how wrong could I be). One horror story I will quickly describe was when I rent out a property to a struggling family. As they were struggling to make ends meet I let it out to them deposit free on a 6 month contract. Boy oh boy how silly was I! Never within the 6 months did I get a payment from them, and when I finally got them evicted the amount of damage they cost me totalled $5000. From this important story and lesson I learnt that to be a landlord you have to have your wits about you, and you have to think about protecting your investment before anything else.

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