Being a landlord can seem too good to be true. You just sit back and collect the rent, right?
Well, it’s not quite that simple. There are many advantages to being a landlord, but it’s important to see the full picture before you commit.
Benefits of Being a Landlord
“One of the benefits of being a landlord is that you own a tangible asset. “
For many people, this creates a sense of pride and accomplishment that you can’t get from money in the bank.
Of course, rental income is the obvious benefit. After the rent has been collected and the monthly expenses have been paid, there should be some money left over. This is income that your property has produced for you.
Although it is not guaranteed, your property is likely to appreciate. While someone else is living in your home and paying the bills, your property will increase in value. You can sell it later and make a profit.
Rental properties can be purchased without having all of the cash available to cover the entire cost of the property. You supply a down payment, and a bank supplies the rest of the cost.
The debt is secured by the property. In the event that you lose the rental property, you won’t lose the home that you live in.
There are many tax advantages to owning a rental property, too. Many of your expenses are tax deductible, and you may be able to claim a net loss after those deductions.
Downfalls of Being a Landlord
When you are a landlord, you are liable for what happens in your rental property. If something breaks and a tenant is injured, you could be subject to a lawsuit.
“You have a responsibility to ensure that your property complies with all government codes.”
Maintenance expenses can be a headache for landlords. You can’t always predict what will go wrong or how much it will cost to repair.
If you have a major repair issue that you can’t afford to fix, you could lose your tenants and be stuck with a mess.
Tenants aren’t always predictable, either. Of course, you try to find the perfect tenant, but you never know what people will do.
It is possible that the tenant will just stop paying the rent, and you will have to go to court to get them evicted.
Finding the Balance
You can minimize the negative aspects of being a landlord by following a few simple guidelines.
1. Set reasonable expectations
. Shoot for a positive cash flow, not to become an overnight millionaire.
2. Be realistic about the time commitment that is required
. If you work a demanding job and aren’t willing to spend an extra shift dealing with your rental property, consider hiring a property management firm to do it for you.
3. Know what to expect
. Read up on your responsibilities as a landlord so that you don’t run into problems later.
4. Get a property inspection
. You can’t know everything that might go wrong, but you can certainly get a lot of valuable information from having a professional property inspection.
5. Check out prospective tenants before you rent
. They may seem nice in person, but you need to have as much information as possible before you hand over the keys.
Contact McMath Realty to learn how we can help you manage your rental. We offer a variety of services to assist you in maintaining your property, including investment consulting,property management,rental management,property inspections, and home maintenance services.
We can run background checks and help you find the perfect tenants, inspect your property, and manage the day-to-day dealings of owning a rental property for you.
We manage rental properties in Chandler, Mesa, Gilbert, Scottsdale, Phoenix, Glendale, and all areas of Maricopa County.
We advertise your property in the MLS listing, on multiple websites, and on our own website. We also use signage to attract potential renters who are out driving around and looking for rental opportunities. We will assess your property, recommend improvements, and help you price your unit appropriately.
Contact McMath Realty at https://mcmathrealty.com//contact.php to learn more about how we can help you keep your rental property in great shape and take care of the day-to-day dealings with tenants!