Are you a Landlord or an Investor?

Property investment. It can start as passive income—your money working for you—then suddenly become weekends spent painting, unblocking drains and chasing unpaid rent. Graham shares his tips on balancing the roles of property investor and landlord.


Many people are excited at the prospect of being a property investor and not so much at the prospect of also being a landlord. You’d expect this to be the case, but I think over time more and more investors will become even less enthusiastic about the landlord experience. Here’s why …


Like most industries, there are an increasing number of standards and regulations that landlords must comply with. The expectation is that landlords will supply habitable properties for tenants (who would have thought!). These properties need to be insulated, up to a certain standard, be safe and, soon, will need a warrant of fitness. The latter is not yet law but it seems that in time it will be (I think it is a good idea). 


There is also an increasing obligation on landlords to supply heating (again a good idea) and also proof that the house is ‘meth free’.


The change in health and safety laws also means that the directors of companies have an obligation for the safety of those in and around their company. If you own rental property in a company then you fall under this obligation. Again, the intent of this law is good, if not the bureaucracy attached to it.


What’s the key take-home from this? Well, if you’d prefer to focus on the investing, not so much the landlording, a good property manager could save a lot of stress.


It may be time for the professionals to do what they are good at!


Graham Goodisson is a Registered Financial Adviser with Velocity Financial. No investment decision should be taken based on the information in this blog alone. A disclosure statement is available free of charge upon request.