Sure, it might sound great to be a landlord – and sometimes it is. But it can also be extremely challenging. Here are just a few of the pros and cons of becoming a first-time landlord.
Bringing in rental income is definitely one of the biggest advantages of being a landlord. Some people bring in their entire income from rental revenue. That said, not bringing in expected rent can be a huge disadvantage – especially if you’ve come to rely on that money. Or if tenants start paying rent late every month it can be irritating. If you are concerned about these risks you might want to look into rent insurance for landlords with companies such as Rent Rescue.
A lot of new landlords say they have serious concerns about tenants damaging their homes. This is a valid concern. If tenants participate in destructive behaviors and don’t follow up on things like a leaky roof it can cost you several thousands of dollars to remedy. Some of the larger issues can include:
- Severely clogged or broken pipes
- Animal scratches on doors
- Shower leaks
Although a hefty security deposit can alleviate some of these concerns, you can also request an annual property inspection to make sure there aren’t any substantial repairs that need to be made.