How It Feels Becoming A Landlord?
This tag carries a long history in my family and just following on my forefather’s tradition of becoming a landlord, I had always a soft corner for becoming an owner of my own property.
But unlike them, I didn’t want my property to be a liability but an asset (I have read the Robert Kiyosaki Book Rich Dad Poor Dad so many times). Ha Ha…
So I was wondering How to do It?
Read: Ways to Make Extra Money
You must have figured out now why I took the decision to invest some of my hard earned money only in commercial property and not buying a house for me.
If you haven’t figured out, Simply speaking a rented property goes in your asset column and it doesn’t increase your burden.
At first, it was really scary to be a landlord as I have heard many stories of people not paying rent and going away.
Some were telling me, It becomes almost impossible to recover rent from defaulting tenants, Its a long legal struggle and most of the landlords give up.
Also one of my friends told his story of how a tenant has occupied their house and stopped paying the rent after 6 months and now they are not even vacating the place.
So people sometimes take the advantage of the vulnerability of landlords and legal loopholes and don’t vacate the place easily.
Hearing so many stories and bad experiences about it, I became negative about it.
Decided To Become a Landlord
But after some days I read about financial freedom and in that, I read about how financial freedom is rewarding.
So I decided to take the risk and becoming a landlord of my own commercial property became my aim (of course my medium-term goal).
Property Built And Tenant Search
With lots of labor, hard work, and investment the building was built and we started searching for a suitable tenant.
I got my first tenant within one month of starting my search for tenant and he was a guy from another state.
The guy had a big franchise brand name associated with him and we immediately had a discussion about his needs and how he plans to develop his business in the area.
We had decided not to rent out our property to individual proprietors as they seem to be risky and powers are concentrated in a single hand.
They have a high chance of default and basically its risky as your whole rental earning revolves around the ethics of a single person.
Somehow he convinced me with a lot of struggle and calling me every time. (How Frauds Work, Never be swayed away by pressure, always apply your own Brain)
Also, I was eager to become a landlord and I got blindfolded by the idea that my long dream of becoming a landlord is becoming true and I am about to taste the fruit of my hard labor.
I Agreed but He Defaulted Later
I nodded yes and all the agreements were signed as per the laws of the land.
And after 6 months my nightmare came out to be true, the guy started defaulting on payments and It seemed all that stories and negative things I was hearing about tenancies came to be true.
My Biggest Mistake
I started cursing my fate but somehow I didn’t lose my calm and for three months I was negotiating and taking to my tenant with the help of my father.
Finally, we decided that he needs to go as all the talks failed and the guy was defaulting on payments month after month.
We filed a complaint and started the procedure to vacate the place.
After lots of pressure and with the help of legal routes finally they vacated the place after a long 6 months and they went to another rented place. (God helps those landlords whose property he tenanted).
Again a hope smashed in me and now I got very strict about my criterion, we wanted to give only to companies and big brands directly (Of course If they are interested).
We Found Another One(Good Brand)
Finally after a good 2 months of advertisement and reaching out to people in renting space we managed to get a very good company for our place.
So till then, things became smooth and I felt no any bad experiences about being a landlord and it’s a smooth journey now
Here are some of my learnings From my venture.
# Always do your due diligence about whom you are renting your property, Know their backgrounds and verification of their police records is a must.
# Rent agreement should be registered with the government authority so that it will have a legal validation.
# Try to give your commercial property to a company or good brand, where the power is concentrated not in a single hand.
#Never be in a hurry to rent out your property and always prepare the contract in consultation with a good attorney.
#Look for some red flags such as every time Individual asking for some more time above due date and defaulting at that time.
Don’t be swayed away by people having their negative experiences and sayings about becoming a landlord.
It really feels good to have your own rental commercial property as it provides a small financial free life.
A wonderful experience cross your mind when you see lots of people bustling into your property and getting their services done or making purchases with a good brand.
What are your experiences with renting a property?
Would you rent out your property to an Individual or a Brand?
Are you scared or excited about renting your property?
Like, comment and share If you liked and learned from my blog and experiences