INSURANCE . RETIREMENT . INVESTMENTS
A Landlord is described as a person who owns and leases apartments, condominiums, buildings, or any form of real estate to others for a price, with the person leasing said real estate from the Landlord being called a ‘tenant’.
Landlords collect payment in the form of rent, which is traditionally a monthly payment made either the last week of the month or the first week of the new month. Landlords have the legal power and right to negotiate payments, prices and other clauses in their rental agreements, which must be agreed to and signed by the tenant prior to entering into business together.
Collecting their dues is just one of the responsibilities of being a Landlord, but with today’s blog we have in-depth knowledge to help you delve into responsibilities of being a Landlord.
1. Landlords are first and foremost business people: There is a somewhat derogatory perception that Landlords simply ‘collect rent’ at the end of the month. This could be the furthest thing from the truth. Landlords are first and foremost business people, meaning their primary goal is the provision of a service in return for profit. This is reflected in their business decisions, such as purchasing an apartment that is located in heavily-populated areas of the country or investing in luxury condos in a country where there is high demand for it.
The life of a Landlord is never fixed, and they are constantly seeking new ways to improve their existing products and services, and to stay ahead of their competitors.
2. Maintenance and Upkeeping: The maintenance of any property that is leased by a Landlord is their direct responsibility unless stated otherwise in the contractual agreements. Maintenance work includes but is not limited to utilities (water and electricity) , lawn maintenance, mechanical repairs, and infrastructural works. This cost is more often than not included in the leasing/rental fee and is therefore not at an additional cost to the tenant regardless of the severity of repair works needed.
Take for example, a power surge completely destroys the wiring of a building that contains tenants. The cost to repair this wiring must be solely undertaken by the Landlord and is not passed on to tenants as their leasing fee has already been agreed to and signed under the Landlord-Tenant Agreements.
This can result in a loss to Landlords should the repair works be exorbitant, and one must be mindful of this before embarking on a career as a Landlord.
NOTE: As a Landlord, having Landlord Insurance gives you spectacular coverage for your building and its contents. This coverage can directly assist in off-setting the costs of unforeseen damages.
3. Provide routine checks of property: A basic responsibility of a Landlord is to conduct routine checks of his/her property. Even if this property is inhabited by tenants, it is within the Landlords rights as stated in the Landlord-Tenant agreements that the Landlord can enter and conduct checks as he sees fit and at the convenience of the tenant.
Additionally, in the event of suspected criminal misconduct by tenants, the Landlord reserves the right to enter and search properties being rented by said tenants, as well the right to immediately and irrevocably cancel all leasing agreements.
4. Paying your taxes: Paying taxes is not exclusive to those who have traditional jobs; Landlords must pay taxes as well if they constitute as a business and operate under a registered business name. If being a Landlord is your only occupation, then this has to be declared to the Government as you operate as a business, and businesses must pay taxes on their earnings. Tax rates vary from country to country and are based on the total earnings of a business.
5. Protect your building with Insurance: Are you a new to life as a Landlord and do not have Property Insurance? One of your most important responsibilities is properly insuring your properties with a solid insurance plan. Properties are costly, with starting prices in the range of hundreds of thousands of dollars, or even millions of dollars based on the location, features and modernity but having no property insurance when disaster strikes is even more costly.
Regardless of the cost of your property, you must always have Property Insurance.
We hope this week’s blog has given you some insight into the life of a Landlord and the responsibilities attached. Join us again next week for more!