Crises can make anyone evaluate their options. Occasionally, this reflection also means a change is in order to secure our financial future. This change may signal that it's time to consider diversifying your wealth through the stability of property ownership. Those of us who serve property owners as the experts in Chesapeake property management know all too well how big a step it can be to start becoming a landlord or to get into the real estate business.
Whether you're approaching retirement and wondering about where to source additional retirement income or looking for a side project with a flexible schedule and a consistent return on investment, becoming a landlord is definitely a valuable option—especially during a recession that has impacted so many other industries!
Many people want to test the waters of a new venture before they jump into a significant investment, especially during a crisis. Read on to learn some basics of how you can start the process!
Should You Sell? It May Be Time to Rent!
There will always be fluctuations in the value of real estate, and if you are ready to move into a new home during a buyer's market, that's great for one part of your deal. However, you may realize that you won't get what your home is worth if you sell your home now.
Yes, it's daunting to have two mortgages at the same time, but this possibility offers you the chance to try out being a landlord and see what you think of it. Becoming a landlord by turning your former home into a rental property also helps shield you from some first-time risks associated with being a rental property owner.
There are a few reasons why starting with your own former home can be valuable as a first-time landlord. No one likes to purchase a rental property only to discover lots of deferred maintenance or issues; with a home you've lived in, you have an in-depth idea of what work needs to be done on the house, and there are far fewer surprises. You also will be able to decide how to rent this home if you are considering selling soon, so you might only rent month-to-month or plan to sell after a year of renting. You don't have to worry about getting into the business and not being able to get out after a certain amount of time.
As Chesapeake property management experts, we do want to caution you: once you see how profitable owning a rental home can be, you may want to add more properties and build a portfolio!
Do You Need Additional Cash Flow?
Another reason that people consider becoming a landlord is to find a new source of revenue, perhaps in addition to a day job or retirement savings. The day to day work of a landlord is quite modest for only one property, though the more properties you gain, the more full-time being a landlord can become.
One positive of owning multiple rental properties is that you're building equity faster than you could do as a homeowner, as well as getting a reasonable monthly injection of cash through rent payments. These additional sources of income can make it easier to achieve your financial goals and help to put you on a path to the success you desire. It's a nice fit for those who want to be able to diversify their income and add stability in an unsteady job market.
Property Management Makes It Easy!
While not everyone will opt to start a landlord 'business' by jumping into Rent Estate™, when you get into it, you may discover you've got quite the knack. Finding a great real estate deal is exciting, and after you have two or three reliable properties, you can start aiming for homes that might require a bit more work to get ready to rent. While this work can be high on elbow grease, requiring some sweat equity on your part, the return can be substantial! However, that usually means an investment of your time to pull it off.
No matter what kind of growth you experience as a landlord, you'll eventually notice if you've taken on a lot of work that you crave more of your time back. Whether you use it to expand your business, work another job, or spend more time with family and friends, professional Chesapeake property management provides a great way to offload the day-to-day tasks of your growing landlord business.
Our dedicated team at Renters Warehouse has the experience to find and screen the right tenants for your properties, maintain communication, handle work requests, and generate strong relationships to keep long-term tenants for as long as you need us! Within a crisis or without, we are your guide to successful Rent Estate™.
With our team on your side, you can balance the excitement of becoming a landlord with all of the other things you enjoy doing with your time. Still worried about the potential for starting your landlord career right now? Get started with your free rental price analysis to see what your home might be worth as a rental!