In the beginning, you may have decided to become a part-time landlord to gauge how you liked it. You may now want to shift from being a part-time to being a full-time landlord. Check out this article to find out how to make the transition.
What are the Pros of Being a Full-Time Landlord?
Not everybody is comfortable handling the responsibilities of a full-time landlord. However, there are certainly a lot of advantages to being one. Some of these include:
Consistent Monthly Cash Flow
Full-time landlords have adequate time to focus on making their rental profitable. This ensures that their earnings continue to be maximized, resulting in consistent earnings.
Flexible Lifestyle
One of the benefits that full-time landlords enjoy is having a flexible lifestyle. There are no fixed hours so they can work around their schedule and commitments.
This is unlike being a regular employee where the hours are set and designated for performing work tasks in certain periods of the day.
Full-time landlords can choose to take off for a holiday when they feel the need to and for extended periods if they wish to. Meanwhile, full-time employees must stick to the allotted number of vacation leaves provided.
Tax Advantages
When you invest in real estate, you gain tax savings. Additionally, you can also benefit from property-related deductions. In addition, being self-employed allows you a home office deduction.
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While it is true that part-time landlords also benefit from these perks, full-time landlords can completely take advantage of them.
What Are Some Tips to Easily Switch from Being a Part-time to a Full-time Landlord?
Quitting your regular job can be a tough decision so you need to prepare properly to shift to doing full-time property management. Despite the risks though, the benefits are huge, and you should strive to meet this goal by being ready.
Here are some recommendations to help you manage the switch:
Set Aside Some Cash
Preparation can go a long way when it comes to embracing the role of a full-time landlord. When do you plan to do it? Planning the stage early can help you by starting early on saving up some cash.
Try to set aside a budget of three to six months' worth of living expenses. As a good precaution, you could even set aside up to a year of cash reserve if you have no other full-time income source. This will result in experiencing reduced stress should business problems occur.
Calculate your monthly living costs and save up for a couple of months to a year. Try to prioritize spending only on the basics, such as food, shelter, transportation, and healthcare. Let go of buying unnecessary items so you can quickly arrive at your planned budget.
Have More Than One Active Property
Since you aim to become a full-time landlord, you must have a couple of units to rent out already. This ensures you will have enough rental income in case one of the units becomes vacant. Consider hiring a property manager to take on the daily tasks if you need to take a step back.
As an owner of several rental properties, you will be able to easily gauge if taking on a full-time landlord role is for you.
Consider Having a Mentor
While managing your rental spaces, you might stumble upon rental property issues. If you surround yourself with the right network, it can be easy to solve these issues. There are indeed countless benefits to being in touch with people who have professional experience and solid expertise.
Engaging with a mentor can also save you from costly business mistakes and limit making them. Since mentors already have long-term experience and insights, they are able to provide the right advice including having all the proper paperwork and clauses ready.
They can guide you in dealing with plenty of scenarios. Not only that, but they can also connect you with other experts helping you strengthen your own network. Thus, you can increase your knowledge and resources.
Avoid Burning Bridges
Even if it is highly tempting to leave your job right away and not care about the consequences, it is ill-advised to do so. Later on, you may be seeking a job reference from your former employer. There is no telling what will happen in the future, and you might need a referral.
Avoid burning bridges to also protect your business image. Entrepreneurs need to take care of their social networks. Who knows when you will desire to apply for a regular job again?
Leave in the good graces of your ex-bosses and colleagues. Limit speaking ill of your former company. Your workmates might end up referring quality renters to your rental unit or may also become among your tenants.
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When resigning from your job, share that you are immersing yourself in real estate. You never know when good tips are given to you, including additional resources and connections to professional mentors and experts in the property management industry.
Work to Largen and Diversify Your Portfolio
Since increasing your portfolio is a must, you may have to sacrifice some of your time. To avoid this, consider hiring a reliable property management company to take care of your rental units.
You will gain professional experts sharing their best management practices and focusing on the critical details that matter. They can also effortlessly provide solutions to property issues. This way, your time is protected, and you can chase after valuable real estate investment opportunities.
Bottom Line: Partner with Service Star Realty
As a dedicated business partner, Service Star Realty provides plenty of benefits to you. We can maximize your earnings, reduce your expenses, and help you succeed in the rental industry.
We offer a full suite of property management services that includes advertising vacant rentals, screening prospective tenants, collecting the rent promptly, maintaining your unit, providing financial reports, and handling evictions.
Contact us today!
Service Star Realty
2929 East Camelback Road #119, Phoenix, AZ 85016
(480) 426-9696
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