Life as a landlord can be a challenging one. While renting out a property to strangers is a good way to make money, it can also be worth so much hassle and stress that it begins to feel like it isn’t worth it.
When people talk about life as a landlord, they tend to consider long-term property letting. This is being a landlord to a standard property, which you let out to a family or young professionals, ideally for as long as possible. This is the most secure way of generating a rental income, but it’s not the only one– and the solutions below might be the best way to minimise stress while still bringing in the extra income that you desire.
#1 – Renting a mobile home
Mobile homes are among the cheapest properties to buy, which makes them an excellent choice for a first-time investor who doesn’t have a huge amount of cash to spend.
The benefit of renting a mobile home is primarily found in the upkeep; due to the smaller space, and the lack of foundations and structural issues, a mobile home is far easier to keep in good condition than a house. This could save you a fortune in maintenance costs that might otherwise eat into your profits. You should also find it relatively easy to find a tenant; as the rent you charge will be lower, great tenants may choose mobile homes as an option to avoid spiralling property rent prices. For these reasons, it is well worth looking for mobile homes for sale in popular locations and moving forward with your investment.
#2 – Become a holiday landlord
If you don’t want to have to deal with the stress of year-round tenants, and the legal complications they can bring, then you should consider becoming a holiday landlord. This involves buying a property in a popular holiday location (coastlines and rural areas are always a good choice) and then renting it out on an ad hoc basis to holidaymakers.
The wonderful thing about being a holiday landlord is that tenants only use the property for a small amount of time, which helps to ease maintenance costs. You can also simply stop letting at any time, which avoids being locked into a contract the way you would with a permanent tenant. These factors make buying a holiday home and leasing it out to holidaymakers a viable choice for a wannabe landlord who prioritises flexibility.
#3 – Rent to backpackers
Backpackers are always on the lookout for cheap, affordable accommodation they can use rather than relying on hostels and motels. You would need to buy a large property and then convert it into single-bedroom units, which you can then rent out on a short-term basis to backpackers who are staying in the country for longer than a holiday but not so long as to fully move there.
The yield on backpacker properties can be fantastic, and though they do require a little more maintenance, you should make enough to cover this easily.
So if you don’t like the idea of being a long-term landlord, one of the solutions above could be the right property investment choice for you!