Managing one or two rental properties as a full-time employee elsewhere can be challenging. If you are looking to dedicate your time to focusing on your rentals, you may be interested in switching from a part-time to a full-time landlord role. Read here for some tips on how to successfully make the change.

 

Pros of Being a Full-Time Landlord

Earning A Stable Income

When you are a full-time landlord, you can focus on increasing your cash flow and improving your services by attending promptly to your tenants’ needs and keeping up with your property’s maintenance.

 

Enjoying A Flexible Lifestyle

With most other full-time jobs, your free time will be limited. If you switch to being a full-time landlord, however, you can enjoy more lifestyle flexibility. 

As a landlord, you will not be confined to working a regular 8-hour weekday schedule. You can check your rental unit anytime or arrange to speak with your renters whenever you need to. 

The perks extend to endless freedom with holidays, breaks, and time off. Within reason, of course.

 

Maximizing Tax Advantages 

As a full-time landlord in Colorado, there are property-related deductions you can access that can raise your tax savings. Although part-time landlords can still enjoy them, full-time landlords benefit more.

A closeup of a pen and a calculator.

 

How to Make a Painless Switch From a Part-time to a Full-time Landlord

Quitting your full-time work can be nerve-wracking if you don’t have a fixed regular income to fall back on. However, being a full-time landlord can be rewarding as long as you make the transition properly and follow these tips.

 

Build A Cash Buffer 

To succeed as a full-time landlord, you should be financially ready. Work out how much time you will need to transition from a part-time to a full-time role. 

Once you have a concrete timeline, make sure to create a cash reserve by setting up a budget. Allocate funds for your living costs for longer than you’re expecting to need them, just to be safe. This will reduce stress when you encounter property issues that require steep repair costs.

 

Increase Your Portfolio Of Properties

If you decide to switch to being a full-time landlord, plan to own more than one rental unit to generate enough income. A tenant could end their lease earlier than you anticipate, so it is good to have another occupied rental to count on for additional income while you work to re-vacate your other unit.

With more rental properties, you can make a better assessment of whether being a full-time landlord is a good fit for you.  

A “house for rent” sign in a yard.

Seek Out Mentors

When you’re a newbie in the real estate industry, you must learn the challenges faced by landlords. With a great support network, any issues you encounter will be easier to resolve.

Some landlord mistakes can be financially detrimental. With a great circle of mentors, you can discover quick solutions that may initially appear difficult. 

Access to professional expertise is invaluable, so having a mentor is extremely rewarding. Plus, you gain more resources that can help you navigate the common issues of owning a rental.

 

Avoid Burning Bridges

No matter the environment you are leaving at your full-time job, ensure you are on good terms with everyone when you leave. You never know if being a full-time property manager will work out for you. You may need a job referral in the future. 

Burning bridges can be short-sighted, as having an existing professional network will serve you in a lot of ways, especially if you are a new entrepreneur. You never know if a former colleague can connect you with potential renters or introduce you to a mentor.

It will also help you to reveal your next plan of action and what industry you are looking to immerse yourself in. Your former officemates may support you by throwing good referrals, updating you on good deals, and linking you with helpful resources and excellent mentors in the real estate industry.

Two people shaking hands over a table

Plan To Keep Adding Properties

As a full-time landlord, you must manage your time well to succeed in the rental property sector.  You might opt to engage the services of a property management company to take care of your rental property investment. With a professional support team, you are guided with the best industry practices that can turn your property into a success.

You also create more time to focus on chasing after property opportunities instead of being stuck with paperwork and resolving typical complaints. With a professional property manager handling your rental, you gain more peace of mind, secure in the knowledge that your property is safe in the hands of experts.

In general, landlords aim to invest in one property per quarter. You can own eight properties in two years, which allows you to earn sufficient income without relying on a salary of full-time work and working for a maximum of eight hours daily each week.

 

Partner with Keyrenter Denver

Keyrenter Denver is a committed property management company that streamlines rental management to run your rental efficiently and optimize your income. We offer excellent marketing, detailed tenant screening, prompt rent collection, effective property maintenance, and more. Contact us today!