News outlets in Saudi Arabia recently reported that nationals preferred having expats as tenants compared to other Saudi nationals.
According to the report, landlords believed nationals were less likely to pay the due rent on time and caused more damage to the property. Expats, on the other hand, were thought to be more responsible when it came to maintenance and more committed to the terms of the contract.
People usually have a misconception about owning property. Becoming a landlord is a major responsibility and we have to think about all the pros and cons attached to owning and renting a property. Landlords need to be well informed about laws, property rules and regulations and how to resolve any issues which may arise.
If you are thinking about becoming a landlord, below are a few factors you should consider before taking the leap.
Owning a property doesn’t mean you now get to sit back and relax. On the contrary, it is a near full-time job. Landlords are generally responsible for maintenance work for the property. Therefore, be prepared to get late-night calls about broken water heaters or other contractual obligations. If you have a full-time job and a family and kids to look after, owning a property might add to your responsibilities.
Becoming a landlord means building a mutually beneficial relationship with your tenant. After all, your tenant is paying for bills and it is vital to maintain a healthy business relationship to avoid any conflicts. Therefore, if you generally aren’t good with people or lack patience, than perhaps you need to evaluate your decision of becoming a landlord.
Evaluate all risk
You might already have a portfolio of investments which are adding to your yearly income besides real estate. If you are money savvy and are already doing a good job saving for retirement, perhaps investing in a property is not the best option. It is better to stick to an investment you have tried and tested. Chasing tenants for rent, finding new tenants and fulfilling their requirements take up a lot of time and effort and may not have as high returns as you expected.
For that reason, calculate all risk factors involved. If you’re thinking of getting a mortgage from the bank to get your new property than make sure you can afford it and are getting the best rates in the market. To make your search easier, compare all the information on mortgages in Saudi Arabia on Souqalmal.com.
If you are still convinced that being a landlord is a good option for you, make sure you have savings before you invest. You should also find out all the legal procedures and laws with regards to owning a property in Saud Arabia.