Being a landlord can be a rewarding journey, but it’s not without its challenges. After nearly two decades in the business and owning over a hundred properties, I’ve made my share of mistakes. Here are the five things I wish I had known before diving into the world of property investment.

1. Keep It Professional

When I first started, I treated being a landlord as a side hustle rather than a serious business. It wasn’t until a decade in that I realised the importance of professionalism. Bringing in a knowledgeable letting’s director was a game-changer. They implemented proper systems for tenant referencing, rent collection, and property management. Unlike the early days when I would accept the first tenant with cash, now every step is handled with the care and precision of a professional letting agent. Self-managing landlords often juggle this role with a full-time job, leading to amateur mistakes. If you’re serious about being a landlord, treat it as a full-time business, even if it’s not.

2. Set Proper Financial Expectations

While property investment can be lucrative, it’s crucial to set realistic financial expectations. It’s easy to get carried away with projected returns, but the reality includes void periods, maintenance costs, and other unexpected expenses. Initially, I didn’t budget for capital expenditures like new boilers or roofs, which led to financial surprises. Remember, the cash flow isn’t all profit; it’s essential to account for these costs. Even a return of 18% is excellent, especially with capital growth and tax efficiency considered. Stay realistic and appreciate the steady gains.

3. Understand Your Responsibilities

As a landlord, the buck stops with you. Whether you’re managing the properties yourself or through an agent, you have a responsibility to maintain decent and safe homes. This includes being available 24/7 for emergencies and understanding your legal obligations. It’s also important to recognise your broader responsibilities—to your family, your tenants, and the community. Owning up to these responsibilities helps prevent issues that can arise from being an absent or inattentive landlord.

4. Be Prepared to Work

Many people view property investment as a passive income source, but the reality is different. It’s not as passive as it seems. You need to stay engaged, whether it’s keeping up with legislation, reviewing profit and loss reports, or working with your letting agent. I’ve learned to compartmentalise the work, such as dedicating an hour a month to meetings with my property manager. While the work isn’t overwhelming, it’s crucial to stay on top of things. Even simple tasks like refinancing properties require attention and effort.

5. Have Some Fun

After years of hard work, it’s important to enjoy the fruits of your labour. For the first 15 years, I reinvested all my profits back into the portfolio, but I realised it’s equally important to celebrate milestones. Whether it’s opening a bottle of champagne after acquiring a new property or setting other fun goals, make sure to enjoy the journey. Delayed gratification is valuable, but don’t forget to treat yourself along the way.

These five lessons have been invaluable on my journey as a landlord and property investor. If you’re considering stepping into this world, take these insights to heart. And if you’re looking for a professional letting agency to help manage your properties, feel free to click any of the blue Talk To Us buttons and we can have a chat. Whether you’re just starting or looking to grow your portfolio, we’re here to support you every step of the way.