Should You Become a Landlord?

Everyone knows that this market now sucks! Yes, I'm not going to be polite about it...it downright SUCKS! I know it, you know it, we all know it.

So in this market what is happening that is making it suck? Well houses are NOT selling, prices are falling and people are losing their houses to foreclosure left and right.

Most people that want to sell their house list it with a real estate agent, right? Right. And most real estate agents all they do to sell your house is list it on the MLS (Multiple Listing Service), right? Right. Then when the house doesn't sell the agent asks you to drop the price and then when the house STILL doesn't sell the agent says "Well why don't you rent it out?"

Those are classic words from an idiot real estate agent who doesn't know what else to do to sell your house and is thinking that telling you to become a landlord is going to make your life better!

Now don't get me wrong, I'm a landlord and I have no problems with it. But ya gotta keep in mind that I CHOOSE to be a landlord....I just don't fall into a situation and decide "ahh nothing else is working to sell this place, so I'll rent it." Nah....it's not like that.

First of all the truth of the matter is NOT EVERYONE IS CUT OUT TO BE A LANDLORD. It's true. Not everyone has the stomach for it.

Ok now...will your house even make a profit for you to be able to be a landlord? How much is market rent? Then how much is your mortgage payments? Your taxes? Insurance? And any utilities or anything that YOU, the landlord, must pay, like licenses, etc. After you do the math...do you come out ahead or behind?

So you'll have a positive cashflow every month. Awesome! Now, how much do you have in reserves? Didn't think you needed that eh? Well you do. What happens when your tenant calls you and says "uhh Mr. Landlord we have no heat, the heating system just went!" Guess what happens? You had best be getting a new heating system so your tenants have heat. It's the LAW that you provide them with heat.

Ok so hopefully you get my drift about having some cash reserves saved up just in case (and believe it's not just in case you need it...it's WHEN you need it.) Now what about asking yourself if you will be able to deal with different personalities of tenants that you come in contact with or the different personalities of the potential tenats that you will meet. Do you even know how to screen tenants properly? Do you know how to read a credit report? Do you know how to check the tenants references? Do you know how to determine if their references are real or if they pulled them from their rear-end? Do you know the eviction process? Can you handle a tenant NOT paying the rent; financially and emotionally? Can you handle a tenant damaging your house; again financially and emotionally?

These are all questions you need to ask yourself before you tell that real estate agent of yours "Yeah, you know that's a great idea...I think I WILL rent out my property and become a landlord!"

Just for the record...landlording can be very profitable, but you must know what you're getting yourself into first.

If you have a house that you're having problems selling and you want to get a cash offer now and sell your pa house fast with no commissions or fees then call Carey at 610-999-6410 today or fill out this form on our website to receive your quick cash offer!