We’ve all had or have a landlord, at least most of us. Although you might not like your landlord, you must admit you need the housing services. Being a landlord isn’t as complex and time-consuming as it appears to be. Here are the top seven benefits of becoming a landlord:
1. Regular Income
Renting or leasing property is an excellent way of earning passive income. At the end of every year (depending on how payments are spread), you’ll receive a bulk amount of cash. This sum could be re-invested in other ventures or used for upkeep like paying fees and bills.
2. Long-term security
Rental properties are a great way of securing your future. They can serve as a long-term security plan. It also serves as a great way of leaving something behind for your kids. In the worst-case scenario, you can use your property yourself. It is a good way to diversifying your sources of income.
3. The flexibility of managing an investment
Being a landlord gives you the absolute freedom to manage your properties like you would a business. You get to be the sole decision maker, deciding costs, terms, contracts, whom to take in, when to sell and so on. Equally, you benefit from all the profits as well as being the principal decision maker and managing properties don’t have to interfere with your job or running other businesses.
4. Flexibility to sell at the right time
If the market conditions are right, you can decide to sell your property at any time. Generally, depending on where your property is located, your property should appreciate in value over time. This in itself presents a good ROI.
5. Property value appreciation
Renting out your property gives you time to hold on to your property while it appreciates. You earn both ways, from appreciation and collecting monthly or yearly rents. Owning property in Lagos is a big win; Lagos is currently the most expensive city to rent property in West Africa. Owning property in Lagos also increases higher chances of ROI as the value appreciates in just a few years.
6. You gain confidence as a business owner
Owning and managing property makes you more responsible and confident as a business owner. You acquire skills in the process of managing your property and tenants. These skills can be applied to other areas of your life, making you a better person overall.
7. Good retirement plan
Renting out property is an excellent way of securing retirement funds. It serves as a source of steady income without any form of extra work. The money gotten can be re-invested in other ventures.
What to look for when acquiring a property
If you’re thinking of investing in rental property, it’s essential to recognize the features that will increase your ROI. These are two essential key points to consider:
Where your property is located will influence the quality of tenants, and thus your revenue. The location of your property should factor in:
- The demographics of the region; are they predominantly young people?
- Proximity to schools, churches, and offices.
- Accessibility; how are the roads like? It’s much easier to rent out property close to a major highway because most people prefer an easy, direct route.
- Is it close to any major infrastructure like an airport, hotels, or industrial developments?
- Who are your neighbours? (Typically, neighbourhoods with celebrities command higher rental prices)
- Basic amenities; water, electricity, internet connection, etc.
Essentially, where your property is located would determine how much you make from the property. For instance, identical houses located at Ikoyi and Surulere will charge different house rents.
As a landlord, your biggest priority should be choosing the perfect location that can guarantee a huge ROI.
LekkiVale Estate located at Ibeju-Lekki provides a once in a lifetime opportunity to own property. LekkiVake Estate is our fastest selling estate strategically located opposite the new International Airport, in the hottest part of Lagos right now. This investment guarantees you a 400% ROI in 4-5 years; a virtually impossible percentage to obtain elsewhere.
Title of the property
If you’re going to acquire property, you need to ensure it has all the legal titles like a C of O, survey plan, deed of assignment and Governor’s Consent. Without the right title, your ownership of the property is questionable. Also, a survey plan, for instance, lets you know what the area has been designated for. Avoid areas that have been allocated for Government use or agricultural use (unless you intend to use it for that purpose.)
A Certificate of Occupancy is a buyer’s legitimate proof of ownership. This document safeguards your investment and gives you rest of mind, while you enjoy your returns. LekkiVale Estate has a valid C of O. LekkiVale Estate is a low-density residential development, spread across 6 hectares of dry land, offering the perfect investment opportunity.
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Let’s make you a landlord.