When it comes to being a landlord, there are many things that can put you off. You hear stories about nightmare tenants who stop paying rent, and ruin properties. You also know that you could land yourself in financial difficulty because of this. However, there are plenty of financial benefits of becoming a landlord, and there are more of them than you may think. Here are 5 of the main reasons that you should rent out your property (or properties).
#1: It’s passive income
Let’s be honest here, when you’re a landlord, you don’t have to do much in order to get a steady income each month. Sure, you’ll have to make sure that any repairs are carried out, and that your tenants are happy, but you may even employ somebody in real estate to do this for you. You know that you’re going to get this money every month, and you’re not breaking your back for it, either.
#2: It’s a sound investment
When you buy property, you know that it’s highly unlikely that the value of it is going to drop. In fact, if you’ve put more money into an existing property, you know that you can increase your profits massively, which is great news for future you, when the time comes to sell your properties. Your money is usually always safe in property, and it’s one of the best places to invest.
#3: You have something to fall back onto
If any issues arise with your own housing, you know that you can move into your rented property, should you need to. This is better if you’ve personalized it to your taste - or even built it yourself - so look into whether you can do this. You can get help from places like the Construction Loan Center if you’re thinking of self-building, to add to your portfolio of unique properties.
#4: It can pay your mortgage
OK, so it’s not really ideal for your tenant, but their rent payments could essentially pay off the value of the property, whilst you’re still going to be the one who reaps the benefits later on. Therefore, you’re putting less into it, whilst getting more out of it, which is pretty great as far as investments go. If you want to have something to show for doing little work, then property is the one.
#5: You know it’s being looked after
If you get the right people into your property, you know for sure that it’s being looked after. An empty property can be the target of burglaries, and can eventually fall into a state of disrepair. However, one that has occupants who treat the property like their own will always be in safe hands, which is good news for you and your investments. Find good tenants, and keep them if you can.
So, if you’re thinking of becoming a landlord, then here are 5 reasons why you should do so. In the long-run, and the short-term, you could benefit greatly, so invest some of your cash in a house or apartment!