Are you considering investing in real estate and becoming a homebuyer?
While being a landlord can be a lucrative source of passive income, it’s not without its challenges. In this blog post, we’ll explore the pros and cons of becoming a landlord and help you gain an understanding of it to make a more informed decision.
Pros of Being a Landlord
Passive Income: One of the biggest advantages of being a landlord is that you can earn passive income from your rental property. This means that you’ll be earning a set amount of money even while you are taking time off work, on a monthly basis!
Tax Benefits: There are also many tax benefits to being a landlord. You can deduct mortgage interest, property taxes, insurance, repairs, and other expenses from your rental income. This can help reduce your tax liability and increase your profits.
Appreciation of Investment: Real estate is generally considered to be a good long-term investment, and rental properties can appreciate in value over time. This will allow you to sell your property for a profit in the future.
Control over Investment: As a landlord, you control your investment. You can choose the type of property you want to invest in, the location, and the tenants you want to rent to.
Cons of Being a Landlord
High Initial Investment: While being a landlord can be a great source of income, it can also be expensive to get started. You’ll need to purchase a property, which can be a significant upfront cost, and you’ll need to make repairs and upgrades to make the property rentable.
Property Maintenance: As a landlord, you’ll also be responsible for maintaining the property and making repairs when necessary. This can be time-consuming and expensive, especially if you have multiple properties.
Tenant Issues: Dealing with tenants can be one of the biggest challenges of being a landlord. You may have to deal with late rent payments, property damage, and difficult tenants who don’t follow the rules. We highly recommend knowing what tenant laws are in effect in any city you are considering investing in, especially post-pandemic.
Time Commitment: Being a landlord is not a passive investment, and it can take up much of your time. You’ll need to manage the property, find and screen tenants, and deal with any issues that arise.
If you’re interested in becoming a landlord, Cush Real Estate can help! Our experienced Buyers Agents can help you zone in on your ideal residential property investment, guide you through the process, and negotiate strategically on your behalf, and once you’ve secured your new asset, we can help make it a highly desirable rental with our interior design savvy offerings. We offer a wide range of real estate services from buying, selling, leasing, and property upgrades, although we do not offer property management services. Call or email to inquire!