There comes a time in life to step back and reassess your path. For you, this could be the time for a fresh look at your career. If you’re not content with where you are financially—you might have ambition and energy, just not the luxury to quit your day job; but you can still work toward success in your spare time. Is being a landlord a good side hustle? A rental property comes with risks and rewards.
The Pros:
It can give you a taste of a new career.
Every industry is in flux right now. There’s no guarantee of success in a career change, or if you’ll be good at it. Buying a property is more than dipping a toe into real estate, but less than diving right in. You’ll have the security of your full-time job while you learn the ropes, and you always have an out.
It can be a good source of passive income.
Right now you have time to wait for a property that’s a bargain. Then you can count on a monthly stream of cash, which is even more valuable if it’s used the right way. You can pay down the property’s mortgage, invest it, or put it back into improving the rental. And if you want to keep it as passive as possible, you can be largely hands-off by hiring a property management company to take care of the day-to-day details.
It’s an investment that can increase in value.
In addition to the rent, it’s more than likely that the property will increase in value. That means that there’s a profit waiting for you when you decide to sell. With the right turn in the economy, you can double your money in a few years. How many other investments have that potential?
The Cons:
It might take up too much time.
Until you’re an official landlord, there’s no way to understand all the ways a rental property can consume your time. Screening for tenants, making repairs, and emergency calls at all hours: if it’s all too much for you, you won’t know until it’s too late. If you’re hesitant to sink in money, there are other ways to profit from real estate with less risky side ventures from home. For instance, you can start a blog or work as a virtual assistant for a Realtor.
There’s no such thing as the perfect property.
There are so many components that contribute to the real value of a property, and you’re not going to find one with a healthy balance of all of them.
You might just not like it.
Even if you make all the right moves, real estate rentals have one unpredictable variable: tenants. Your success depends on them. Even if you consider yourself a “people person,” there are plenty of them out there to disabuse you of that notion. Is being a landlord a good side hustle? If you trust your instinct for good people, you could be on your way to financial freedom.
Van Rundell is a writer and author who specializes in transportation, travel, guidance, health & fitness. With over 10 years of experience in the industry as a driver and an entrepreneur, he has seen it all. His tone is professional but friendly with a dash of humor thrown in for good measure. In past, he has been advising, educating and writing about transport for the public and professionals alike.
A qualified fitness instructor with over 5 years’ experience as a personal trainer and group fitness instructor, Van brings his deep knowledge of health and exercise science to his articles on health & fitness.
