Unlike what most of us assume, there is a difference between being a landlord and being an investor. As an investor, you may take business risks which often turn to results in the form of profits. While landlords lease and own property, an investor take risks as they focus on getting something from their action.
As an investor, you own houses, but you don’t have to conduct all the responsibilities of being a landlord. The Investment gives you more flexibility than settling to be a landlord in that it reduces some of the hassles. For instance, you don’t have to market your property, screen tenants, conduct repairs or collect rent if you are a real estate investor. These are the daily duties of a landlord. As an investor, you concentrate on profit making from the business and hire a manager to handle these responsibilities.
How to invest in Spanish real estate starts with researching as you make smart decisions that are aimed at benefiting the business. You need to get a management company that can negotiate with potential tenants and advertise the property. They would be in charge of overseeing the property and handling issues within the building.
Investing means that you can concentrate on one thing which is profit making. You also don’t have to deal with stubborn clients who settle rents late. With hard economic times, landlords have to deal with tenants who are not willing to vacate the premises when they cannot pay the bills. This prevents a landlord from getting a new tenant, and it can also make you get a court injunction for them to vacate.
Such challenges cannot affect you when you are an investor since the firm is responsible for managing such and get back to you. If you are not getting any profits from the property, you can sell it and look for better investment opportunities.
You also have a lot of time on your side when you are the investor compared to a landlord. Wise decision making and early planning give good investors the chance to enjoy traveling without worrying about the welfare of the property. Sometimes, landlords have to reside within their property to monitor it while an investor can live anywhere and even enjoy early retirement.
If you hire the best management firm as an investor, the value of your property will increase with time, as you increase rent and reduce expenses. You, therefore, have fewer worries compared to being a landlord. Though both landlords and investors aim at making profits, it is less tedious for the investor than the landlord.
An investor has a business mind-set where they know that they can purchase an asset and later offload it to someone else and earn good profit from it. You can buy an asset which is undervalued and sell it at a high price in the market. A landlord has a lot of sentimental attachment towards their property and may find it challenging to sell it, unlike an investor. A landlord may view selling as losing their home while an investor views it as an opportunity for better investments and making profits.