The life of a landlord is a life of intense micromanagement. In order to keep many tenants happy, you are required to ensure that everything is maintained well from week to week. Not only that, but it’s a strange business to be a part of. There aren’t many other industries in which things may proceed routinely and without necessary interference for months, only to have every problem surface in one fell swoop. If you’re not prepared, you can be overwhelmed by the sheer magnitude of responsibility you have to deal with.

Financially handling the life of a landlord could be considered another thing entirely. It’s important to know that while profitable, a landlord must invest as carefully as they profit. The income flow is relatively stable, but the outgoings could differ wildly from month to month. There are many reasons as to why this is, but seemingly less methods to control those fluctuations. In order to manage your finances well, it pays to know how to operate. Within time you will get the hang of this, but new landlords especially can find themselves overcome with financial burden in a business they once assumed to be smooth sailing.

The following tips may just help you make better decisions in this field:

Take Money Matters Seriously

Many landlords prefer to cultivate slightly less-than-ideal tenants so they do not risk a tenant leaving. This is because that can often lead to a lack of income for a month or many months as new tenants need to be found. This can be relatively wise. A tenant who pays on time might not clean as well, and that’s certainly more ideal than a supremely clean tenant who never pays on time. However, taking money matters seriously is essential. After all, you’re not in this business for the charity of it.

A good way to strike a happy medium between legal backing and solid tenant relationships is to lay out exactly the methodology your tenant must follow. You can clearly define these terms in your tenancy agreement template. This means clearly laying out late payment charges, perhaps asking for a form of security income in case they do not pay (such as a guarantor,) or even asking for months of rent in advance. It might mean asking for lower, more frequent payments to keep the cash flow effective, or even to ask for tri-yearly instalments to cover the future.

Taking money matters seriously is important to be respected as a landlord. Let one-time slide and you can, unfortunately, set yourself up for this to be the norm. It’s always best to cover yourself, so try to ask for at least one month’s rent in advance before your tenant moves in. This gives you a buffering time to evict if they neglect to pay on time, and keep your cash flow active. As a landlord you must always be thinking about sustainable income, and plan in advance for this.

Set Limits

As a landlord, you must also invest in your properties. This is a no-brainer. While it might be that the light bulbs should be replaced by a tenant, the bigger responsibilities are yours to handle. After all, this is your property. Now, you should set some hard and fast limits here. Let’s say the sofa in your property has a spring loose, and your tenants are demanding a new one. It might be perfectly reasonable to simply repair the sofa using a professional upholstery service, rather than outright spending thousands on a new fixture.

It might be that you choose to steam clean a mattress rather than purchase a new one. After all, as long as you’re providing a habitable, nice and clean standard of living, you should not be troubled into wasting money on unwise investments. It can also be wise to adjust rent over time to stay more compatible with inflation and the rising cost of living.

It might also be that within your contract you stipulate that utility usage is on an unlimited tariff. Of course, this should be subject to fair use. For example, a tenant who keeps their heating on full blast over the winter might find the property wonderful and comfortable to live in. When it comes to reading the electricity bill, you might have an argument to give. ‘Fair use’ is the sacred mantra for all tenants offering a form of unlimited payment. This allows tenants to stay responsible for unfair action, and prevent you from wiping your monthly profits simply trying to pay the bills.

Also, consider damage. Damage to property is something that is completely on the shoulders of your tenants. While you might allow for a lick of paint or cleaning out of good investing faith to cultivate the relationship, deeper damages may require you to bill the tenants or punish their security deposit. Do not be afraid to do this in the interest of being a ‘friendly landlord.’ You are a business, not a charity. Your tenants are allowed a license to your home, but it’s still your asset, and any damage could be considered vandalism within punitive laws if not rectified financially.

With these correct limits set, you have a much greater chance of setting the clear parameters within which your tenants operate.

Savings & Excess Funding

Things will go wrong. It might be you experience a hefty leak in two of your buildings on the same morning, and the carpet damage will take professional care to fix. It might be that you need to relocate a certain tenant to ensure their home is fixed. In these instances, heavy investment is required. This can be debilitating. However, if you’ve been smart about this, you will likely have at least a buffer of savings for you to dip into and try to improve your standing.

Financially handling this might be difficult, but by nesting away your profits you can potentially keep the sustainable profit going long term. Just as someone investing in automotive repair to allow them the potential of getting to work and earning, you must keep a ‘sustenance’ funding supply of sufficient breadth. This ‘rainy and annoying day’ fund will give you the means to keep your assets working for you, rather than against you. It also helps sustain tenants who see you take affirmative action in their interest.

With these small tidbits of advice, financially handling the life of a landlord will become that little bit easier.

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Investing in real estate is a sure thing, right? It’s really easy isn’t it Wrong and wrong again. Sure, if you are good at it, investing in real estate can be a very safe investment, but it is by no means a sure thing, and it can be pretty tough going if you aren’t prepared for it.

That being said, you shouldn’t be put off from such an investment because investing in property can often be the safest option. What you should do is avoid making the following fatal mistakes that will kill your real estate profits and make your life more difficult than it needs to be:

Not Casting a Wide Enough Net

The worst thing you can do when investing in real estate is not spending enough time looking at enough properties. If you’re too eager to get started and you just throw all of your money at the first promising property you find, you’ll probably end up with fewer returns and more problems that you would have if only you’d taken your time.

Choosing a Property Because You Love It

It might seem like buying a property because you love it is anything but a mistake and that might be true if you plan to live in it yourself, but if you’re buying it as an investment, you need to put your serious hat on and choose your property because it’s being sold at a good price, it’s in a neighborhood that’s up-and-coming, and you can actually make some money from it. Sure, if you love it, that’s a bonus, but it should never be the sole reason that you buy.

Thinking Your On Flip or Flop

Flip or Flop is undoubtedly entertaining TV, but if you think that your property investment project will be just like the ones on the show – you’ll buy at a ridiculously low price, renovate the building to an amazingly high standard in a ridiculously short period of time and sell it on for a ridiculous price, you’re in for some major disappointment. Although that kind of stuff can and does happen, it’s uncommon, and unless you’re a skilled investor with lots of construction skills and lots of time and money, your journey is likely to be a lot more slow and steady.

Not Using a Property Management Company

Property management from Opulent Real Estate Group takes all of the hard work out of your hands and ensures that you can find good tenants quickly and that any repairs or issues are solved quickly, usually with very little input for you. A lot of real estate investors think they can manage their portfolio by themselves to save a little money, but it soon becomes evident that they are out of their depth and things can go south quickly. Don’t let that be you and hire a property management company.

Not Doing Your Due-Diligence

It should go without saying, but you must do every check it is possible to do before you buy a property. If you don’t do that, you might be surprised (and not in a good way) by damp, bad neighbors, a new development that sees the value of your property plummet and so on!

Avoid these fatal mistakes and a decent real estate investment profit you are likely to make!

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If you’re like most people used to driving, then the prospect of not having a car would be akin to the feeling a child has when they are sent to their bedroom and grounded – cars offer us freedom and huge convenience, yet they are also considerably expensive to run and own. Your vehicle can make up a large part of your household finances, so this article looks at the three most common ways of having a car; leasing, renting and owning – in order to work out which is the most cost effective option for you.

OWNING

This might seem like the most sensible choice, as at the end of the day, whilst buying a car outright – whether in cash, or on finance, is a significant expense, it is at least an ‘asset’ you own yourself. However, a car is a depreciating asset that loses its value each mile you drive and each day that passes by – it’s not like a house which appreciates in value. If you are to buy a brand new car, then as soon as you drive off the forecourt, the financial hit you can expect in terms of depreciation is in four figures!

Buying a second-hand car, particularly one that is just a few months old, seems to be one of the smartest moves you can make if purchasing a car… however, even then, the cost of insurance, road tax, MOT, servicing, maintenance and repairs can mount up to the point any ownership of a car will take its toll on your finances. This is where the less popular option of renting a car can pay dividends.

RENTING

It might seem a strange idea to rent a car, as an alternative to owning one, but if you don’t always use a car (e.g. you live in Central London or travel a lot for work) then hiring a car could prove to be the most financially beneficial to your situation. This way, you are only paying for the car when you actually need it (there’s nothing more annoying than paying for a 24 month lease, when you’re out the country for a few months, and the car is sitting in your driveway)… but more than anything, the insurance is included. When you consider how much insurance costs – renting a car that comes with fully comprehensive insurance can actually end up saving you money, particularly for inexperienced drivers or those without no claims bonus.

LEASING

The middle ground between owning a car and renting one is to look into long-term leasing; indeed, you may wish to visit intelligentcarleasing.com in order to consider your options and see what deals are available – as you can find some incredible offers particularly at this time of year. The great thing with leasing is that you aren’t always responsible for maintaining the car in terms of servicing, and if something goes wrong with the car, you can simply go back to the leasing company and they’ll replace the vehicle. Leasing offers a hassle-free option but the downside is you never end up owning the car, so a bit like renting a property – you’re not building any equity in an asset, however, with a car… it’s a depreciating asset anyway, so this shouldn’t be too offputting.

In summary, there are three main options to consider in terms of having a vehicle; and the right option for you will be heavily dependent on your individual circumstances.

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While home ownership is the goal that many people share in life, very few homeowners actually consider the negatives of home ownership. That is until they are a problem for them. Although for the most part, home ownership is a fantastic financial choice, there are also times when owning a home can have a detrimental impact on your financial health. However, this is usually when you don’t take the necessary steps to protect yourself and your home from financial issues. To learn more about protecting yourself from financial problems that could be caused by your home, read on.

Protect your property from the unexpected

There are times in life when we choose to skip paying certain bills because we see them as being necessary. Whatever you do, don’t make property insurance ones of them. The fact is that anything could happen at any time, which is why taking out homeowners insurance from a reputable company like Trusted Choice is so important. Whether a storm hits and destroys your home, a house fire ruins your property, or a break-in leaves your home in tatters, it is vital that you have adequate protection in place. Every home needs insurance, because the fact is, you never know what might happen, and it is always best to be protected.

Make maintenance a priority

A common mistake that far too many homeowners make, which turns their properties into money pits, is not taking maintenance seriously. If you take the time look after your home and deal with any issues that occur as and when they do, your home should remain in better shape. However, if you leave these issues to worsen over time and don’t deal with them, then you may end up with a home that is falling apart and will cost a lot of money to put back together again. If you aren’t big on household DIY, don’t let that put you off of keeping up with your home’s maintenance, call out a contractor instead. Never put off with household problems as they will only end up costing you more to fix.

Invest for the future

If you want to ensure that should you want to sell your home in the future, you are able to do so easily, and for a good price, it is important to keep your property up to date. This means being willing to invest in new technologies as and when they are available, such as solar power, for instance. These kinds of investments will come at a cost, but the fact is that by choosing to invest in them, you can give yourself and your future the financial security needed. The more up to date a property is, the more easily it should sell.

There you have it, a guide to everything that you should know about ensuring that your home is not the cause of financial problems. Take note of the tips above, and you can make sure that home ownership does not leave you in a financial hole.

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Freelancing is becoming an increasingly popular way for people to make a living. With the freedom to choose your own hours, who you work with and a bigger share of the profits – what’s not to love?

Many freelancers find themselves struggling to manage their finances, with bad habits that can be hard to break. Want to take control of your self-employed earnings? Here are five new year financial resolutions for freelancers.

1. Prove you’re a professional with a business account

A business account may seem like something that’s unnecessary unless you’re earning the big bucks, but even freelancers on a small income can benefit from having a business account. There are many reasons why you need a separate account for your side job or freelance business, but mostly it will make your life easier. Make it easier to manage your finances by being a professional with your business.

2. You will start keeping better track of invoices and payments

Your earnings can be unpredictable as a freelancer, and while the majority of your clients will pay you on time, there’s always the danger that some will be late with their payments or worse – not pay you at all. Start working out a good cash flow system that helps keep you out of trouble and allows you to manage your income and outgoings better. Get on top of when payments are due and start imposing penalties on those who don’t pay up on time.

3.You’ll manage your taxes better

The end of the financial year can be a dreaded time for freelancers, especially if your paperwork is all over the place. You can keep better track of your earnings and outgoings online. Make the most of tools that are available such as a generator for your 1099 form 2017 that can help make it easier to file your return at the end of the year. When working as a freelancer, you can never be too organized, so make it your mission to keep on track in the new year.

4. Start protecting your earnings

With freelance work, nothing is certain. One month you could have several well-paying clients under your belt and the next you could end up with none. It’s time you started planning for those quiet periods by having a good pot of savings you can dip into if the worst were to happen. There are other ways you can protect your earnings that will help you be more confident in dealing with difficult financial periods and help you to protect your future.

Knowing your finances and protecting your money will be important for getting approved for a home loan if you are still renting. Mortgages for self-employed workers are handled differently than full-time salary workers and require extra attention.

5. Don’t accept less than what you’re worth

When you first start out as a freelancer, it can be tempting to take on jobs that are badly paid, or not even paid at all. This kind of behavior not only hurts you but others in the industry too. You deserve to be paid the fair amount for your services, so start getting into the habit of charging what you’re worth. Always agree payment upfront to avoid any difficult conversations when it comes to billing time.

It’s good to have goals for the new year, and as a freelancer, you should always strive to be better. Give your finances the attention they deserve and start taking better charge of your earnings in 2018.

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