Categories
Make Money From Home

Becoming A Landlord: Do You Have What It Takes? – Bankrate.com

Whether you have extra cash you’re looking to invest or extra space in a home you already own, it can be tempting to jump into the landlord game. After all, earning passive rental income can seem like easy money. And with today’…….

Whether you have extra cash you’re looking to invest or extra space in a home you already own, it can be tempting to jump into the landlord game. After all, earning passive rental income can seem like easy money. And with today’s high inflation and tough real estate market, who couldn’t use some additional income?

Jill Wente, a Realtor with Better Homes and Gardens Real Estate Gary Greene in Spring, Texas, says that many of her clients entertain the idea of establishing a rental property and becoming a landlord. “Most clients are thinking about buying a move-up property for themselves and holding on to their current home to turn into a rental property,” she says.

But before you decide to rent out your home or buy something new, ask yourself, are you really cut out to be a landlord? Here are some of the key things you should consider.

Landlords manage both property and people

Being a landlord isn’t just sitting back and watching the rent checks flow in. It’s a lot of work: Not only do you have to manage the property itself, making sure everything is in good repair and all bills are paid, you also have to stay on top of your tenants and how they treat your investment. This is not a job for the laid-back, or the non-confrontational.

Financial considerations

Real estate can be a good investment. But as a potential landlord, you need to be realistic about your ability to afford the property — whether rent checks are coming in or not. Something unexpected will always come up, and you need to make sure you can cover both routine maintenance and emergency repairs.

“Chances are, your rental will be vacant from time to time,” says Wente. “Your next renter rarely comes walking in the next day. It may only be a couple of days, or it may be as long as 60 days.”

Doug Quattrochi, executive director of MassLandlords, a nonprofit association based in Massachusetts, echoes that sentiment. He advises prospective landlords to ask themselves this question: “Will the rents pay for the mortgage, taxes, insurance and repairs, with extra, in case I have a vacancy?”

It’s not a get-rich-quick game, Quattrochi continues. “Real estate can be very worthwhile, but it’s usually ‘get rich slowly.’ You should invest thinking about your retirement, your children and the long-term.”

Tenant risks

Being stuck with a bad tenant is one of the main reasons landlords fail. “One bad renter can ruin you,” says Quattrochi. He recommends building a network of support to help deal with tenant-related issues: “…….

Source: https://www.bankrate.com/real-estate/becoming-a-landlord-what-it-takes/

Leave a Reply

Your email address will not be published.