Is there really a difference between landlords and investors?
One of the most common questions people ask themselves when they think about investing in properties is: What are the differences between being a landlord and a real estate investor? The answer can be complicated, but it’s also worth looking into if you want to start making money from rental properties.
This article will discuss some significant points about what it means to be a landlord or an investor so that you know which one suits your needs.
The Difference Between a Landlord and an Investor
An investor is someone who knowingly invests their money to make more. They want a return on their investment, and they invest in properties that will give them the best chance of success. There’s always risk involved when investing because it takes time for your investment to pay off.
On the other hand, landlords are people who own property but rent it out instead of living in it themselves. This means they have a lot more control over their investments because they don’t have to worry about tenants if something goes wrong with the property or an appliance breaks down. They also get tax benefits for renting out a property, so it’s wise for landlords to keep their properties rented as much as possible.
A Deeper Look Into Landlord -vs- Investor
Everyone has their way of doing things, but it’s essential to understand the definitions and how you want your business to work. A landlord is someone who
- makes all of the decisions for their business
- have a lot on their plate, but they do it
- is a one-stop-shop with everything from beginning to ending
- is expected to do everything on their own
- understands there isn’t any room for error and mistakes won’t pile up due to inefficiencies with time
Now, an investor has access to a team of financial experts that can help them find the best possible deals. They are trading time for money, and it’s working out well because most people value their precious minutes more than they do cold hard cash! Investors think about being more successful, but landlords are actually out in the neighborhoods doing what it takes.
Many people have turned to becoming a real estate investors to get ahead or stay afloat financially during these trying times because rent has consistently grown faster than inflation. This is why you must know what you are getting yourself into when becoming an investor. Like with anything in life, there are pros and cons to everything, so be sure to weigh them out before making any significant investments. There’s no question that real estate investing has the potential to make your money work for you, but it’s important to remember that there is risk involved, and not all investments will be successful.
Challenges of Being a Landlord
A landlord’s work is not scalable. With 24 hours in a day, you have to utilizing your time as effectively as possible, and if not, that will mean missing out on growth opportunities– let alone just one person who wants their property managed like this! Investing firms use the scale by leveraging other people’s resources to focus more attention on where it needs to go while still making money off those investments. However, landlords must create policies and procedures that protect themselves from adverse outcomes should anything happen outside of planned territory or expectation.
The biggest challenge with landlords is you become the bottleneck yourself. It’s hard because we all have a limited amount of hours in our day!
Before you buy properties, take time to imagine what your business goal looks like. Create policies and procedures to help your business run more efficiently. Remember, even if you are running the whole show on your own, seasoned real estate professionals like the property managers at Oak City Properties can help you when you need it.
If you’re an investor hoping to scale your business, then our team at Oak City Properties can assist you with scaling to the business model you want to attain. There are only 24 hours in a day, and there’s only so much you can do yourself. That’s why leveraging can help your health and bottom line.
Hire a Property Manager
Being aware of the scope of the business, whether you’re a real estate investor or landlord, helps you envision what it will take to scale your business to success. Sometimes doing it all yourself can keep you from attaining the greatness for which you strive.
Our team at Oak City Properties can help you save time and money and grow your business. Contact us at (919) 232-9222.
Want to learn more about being a landlord and/or real estate investor? Check out these blog articles:
- Should I Sell or Rent My Home?
- 5 Steps to Setting Your Rental Rate
- Is the College Rental Scene Right for You?
- 3 Reasons NOT to Off-Load Your Rental Property
