{"id":1525,"date":"2020-09-01T13:27:11","date_gmt":"2020-09-01T13:27:11","guid":{"rendered":"https:\/\/www.rentila.co.uk\/blog\/?p=1525"},"modified":"2025-11-07T11:04:39","modified_gmt":"2025-11-07T11:04:39","slug":"pros-and-cons-of-being-a-landlord","status":"publish","type":"post","link":"https:\/\/www.rentila.co.uk\/blog\/pros-and-cons-of-being-a-landlord\/","title":{"rendered":"Pros and cons of being a landlord"},"content":{"rendered":"
\"Pros<\/div>\n

Just like anything in life, there\u2019s the good and the bad. There are great aspects to being a landlord but there are downsides, too. Check out our pros and cons of being a landlord to decide if it\u2019s for you.<\/p>\n

<\/p>\n

Pros of being a landlord<\/h2>\n

Options of owning multiple properties<\/h3>\n

Owning an additional property gives you a few options. If you or a family member ever needs a place to live, then you have the option of moving into one of your properties. A family member may not be able to pass credit and other reference checks, so you can help them out. Or maybe you are renovating a dream house and could benefit from moving into one of your properties for a few weeks or months.<\/p>\n

Great for DIY enthusiasts<\/h3>\n

If you love getting dirty, knocking down walls, ripping up floorboards, painting, and gardening, then renovating properties to rent is a way to enjoy a hobby as well as running a business. By buying rundown properties and installing bathrooms, kitchens, and double glazing, you\u2019ll soon see your investment soar.<\/p>\n

Pension plan and monthly income<\/h3>\n

The Bank of England\u2019s base rate has been at record low rates for over a decade now. Following the global financial crisis, the base rate fell from 5.75% in 2007 to 0.5% in 2009. It has never recovered and at 0.75% favours property investors and borrowers rather than savers that fail to get a return on putting their money in the bank. If you\u2019re looking to build a pension, squirreling money away each month will no longer build the pension it used with previous base rates being as high as 17%.<\/p>\n

The low base rate makes investing in property a sound plan. If you\u2019re just looking to build a modest pension plan, then picking up a few low priced properties, should be easy to manage.<\/p>\n

And with excellent rates on mortgages, you ought to be able to boost your monthly income to afford extra luxuries such as holidays.<\/p>\n

Cons of being a landlord<\/h2>\n

Negative equity and stress<\/h3>\n

Being a landlord is a long term business. Throughout a 20-25 year interest-only mortgage, the increase in value on a buy-to-let property should easily cover the amount owing, leaving you a large lump sum. But at some periods during the first ten years or so of buying the property, you may see house prices fall to below what you paid.<\/p>\n

If you have several properties in your portfolio that are in negative equity, you risk bankruptcy. Famously Anthea Turner\u2019s ex-husband Grant Bovey watched his \u00a3100 million buy-to-let empire collapse and declared bankruptcy owing a further \u00a350 million.<\/p>\n

It\u2019s easy to get stressed if there\u2019s a downturn in the economy. If your tenants lose their jobs and are unable to pay, you could be faced with no income and evictions, on multiple properties.<\/p>\n

Ordinarily, you can ride out a few years of negative equity without any problems as long as you haven\u2019t bought at the top of the market and built your empire too ambitiously.<\/p>\n

Tax and accounting<\/h3>\n

There\u2019s no escaping the taxman by being a landlord. The taxman will still want his cut from your profits. Additionally, if being a landlord is a side hustle for you aside from your full-time job, then your rental income could be taxed wholly at a higher rate.<\/p>\n

The good news is there are plenty of tax deductibles including:<\/p>\n