If you have an investment property in a popular area, it can seem like the route to your fortune is easy. All you need to do is make a few adjustments to the house, find a tenant, and then enjoy your new status as a landlord.
Of course, the reality is… somewhat different. While it might seem like a nice idea, the truth is that renting a property out is not without its difficulties. Even if you hand over the majority of the rental control to an agent, that still means you’re making a dent in your profits, and you might not be any more guaranteed a seamless landlord life anyway. With changing legislation always an issue and landlords high on the target list for national ire, there’s plenty of reasons why the idea of being a standard landlord isn’t going to work well for your situation.
So – you have a property, or at the very least thinking of investing in one. You don’t want to go down the conventional route when it comes to letting it out. So what can you do with it?
Option One: Nothing At All
It’s not the norm, but it does happen: you own the property and then, aside from an annual inspection to ensure everything is still ticking along as it should be, you leave it alone.
This is an expensive option, without a doubt. You’re not going to have an extra stream of income to help with the mortgage and tax burden, so you’d have to be financially sound to even be considering it. On the plus side, it does mean you don’t have to worry about tenants damaging your building or jumping through the various legislative hoops – which if you prefer a worry-free life, might make it worth considering.
Option Two: Short-Term Lets
The so-called sharing economy has become all the rage in recent years, and there’s no reason why your property investment shouldn’t be a part of it. Without the constraints a traditional landlord-tenant relationship might place on you, short-term lets offer you a chance to increase your income without the hassle.
The platform that introduced the entire concept – Airbnb – is still overwhelmingly popular, and you may find that Airbnb management services make it easier than you ever would have imagined to run such a letting. On the negative side, you’re not going to be guaranteed a steady stream of renters the way you would be a more conventional tenancy agreement, but that also means that you won’t be dealing with an endless stream of problems, too.
Option Three: Live In It
Of course, just because it’s an investment property doesn’t mean that you have to have other people live in the house at all. If you pool the money you have available from your home and what you have to invest, you could buy a truly remarkable house which you can then downsize from in retirement – and earn yourself some money at the same time.
This does mean that you’re going to be using – and thus potentially damaging – the house as a family home, but on the plus side, it guarantees that you will always be able to keep an eye on the property.
So which option do you think might be for you?
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