You might be thinking about taking on a new challenge. Perhaps you have realized that being a part-time landlord was not really your thing. You want to go big and focus on being a full-time landlord.
Well, the rental property experts at Pinnacle Property Management are here to guide you. In this article, we’ll cover some of the benefits of being a full-time landlord and some tips for making the transition a lot smoother. Keep reading to find out more!
Tips for a Smooth Transition
1. Start Saving
Becoming a full-time landlord means you’ll need more resources. Whether you want to invest in a larger portfolio of properties or make upgrades to the properties you do have, you’ll need some extra cash on hand. You will likely also be quitting your job since landlording will become your full-time responsibility.
Set up a strict budget and calculate your expected cost of living for the next nine to 12 months. Prioritize your necessities and cut out additional personal and property-related expenses. This will allow you to support yourself and save up for your future real estate goals.
2. Build a Portfolio First
Before you consider being a full-time landlord, you need to own at least two or three properties. This way, you’ll have enough rental income to support yourself and you’ll have a good idea of whether or not this is truly your calling.
Your primary focus now that you are a full-time landlord is to work on maximizing profits. One of the ways you can achieve this is by adding more property to your real estate portfolio.
You could hire a property management company to oversee the rental property and handle the small and time-consuming details that come with managing rentals. This can allow you to focus your time and energy on investing in more properties instead of spending all your time on the day-to-day responsibilities.
3. Find Your Network
It’s difficult to thrive in any industry completely on your own. Finding mentors and collaborators can be a great way to get guidance and support. Find a network of seasoned real estate agents, professional investors, and experienced property managers. It’s likely they’ve run into all the common problems and can advise you on how to avoid mistakes in the future.
Mentors can also give you access and opportunities you might not have found otherwise. For instance, they can refer you to some of their acquaintances who are also thriving in the field. Better yet, they can give you a glimpse of how they manage their own property. Basically, you stand a greater chance of success if you learn from successful people in the field.
4. Keep Your Existing Connections
If transitioning to being a full-time landlord means you’ll have to quit your job, you want to make sure you exit politely and professionally. There is no need to cause issues in your former workplace. You need to leave on good terms and be honest.
Inform your employer that you are moving into the real estate business. You might actually find out that they have advice for you or could refer people to your property. They could offer you deals, give you connections, or even provide capital investments.
The Benefits of Being a Full-Time Landlord
1. You Can Consolidate Your Income
The fact that you are a full-time landlord means that all your time and energy are focused on your rental property. That means all the sources of income you received are aimed toward building your rental property business.
This enables you to maximize profit and yield much more compared to when you were a part-time landlord. Once you do this, it can also be easier to purchase more property and further expand your real estate business.
2. You Get to Be Your Own Boss
Traditional nine-to-five jobs can be rigid. As an employee, you are subject to what your boss says. Sometimes that means taking on responsibility you’re not ready for or working extra long hours when you’re asked to.
However, when you become a full-time landlord, you get to be your own boss. Your calendar is adjustable to what you want to prioritize. You can decide to travel the world on Friday and visit your property on Tuesday! You are in charge of your own time and can spend it how you want to.
3. You Get to Take Advantage of Tax Deductions
Full-time landlords enjoy various tax advantages such as property-related deductions and depreciations. If you’re someone who wants an office, you can also take advantage of home-office deductions. All in all, the tax advantages allow you to yield more income from your real estate business.
Apart from the enticing advantages, you need to know how to have an easy transition from being a part-time landlord to a full-time landlord without experiencing much burnout. Below are some tips which can help you have a smoother transition.
Work with Pinnacle Property Management
At Pinnacle Property Management, we go the extra mile to ensure that you get the best real estate services. We help you increase your monthly cash flow, reduce the workload and stress that comes with managing real estate, and ensure that your transition to being a full-time landlord is smooth.
We simply make work easier for you by taking the daily responsibilities like marketing your property and tenant screening off your plate. If you would like to learn more about how we can help your approach towards owning property, contact us today!