Many people debate whether they should sell or rent out their house, and they’re really nervous about becoming a landlord. Becoming a landlord can be a very scary undertaking, and there’s a lot involved.
Consider Your Long-Term Financial Goal
So, when a new client calls us and they’re debating between renting out their property or selling, one of the first things we ask them to think about is what their long-term goal is with the property.
Depending on the market, it may make more sense for them to sell now, instead of holding onto it as a rental, if they don’t want it to be their forever property. On the other hand, if they’re looking at it as an investment tool, then it makes more sense to hold onto it and rent it. We frequently advise clients talk to their financial planner to see how being a landlord could fit into their long-term financial strategy.
From Homeowner to Landlord
If you do decide to become a landlord, Peace of Mind Property Management is here to help. We take the stress out of being a landlord. We’ll help you get your property set up properly for rent, including making sure it has the correct license, inspections, and whatever else you may need. We make it a really seamless transition for you from being a homeowner, to being an investor and a landlord.
A Business Venture
We treat all of our landlords as partners. We want them to feel like we’re right in it with them and we’re working together to make this a successful business for them. We want all of our landlords to think of themselves as business owners. When they begin renting out their property, we make sure that we provide the appropriate accounting for them so that they can see their numbers and understand what’s coming in and out.
So, basically a Profit and Loss Statement is available anytime through Peace of Mind Property Management for each of our landlords. We also encourage them to look at it and understand what’s going in and out, and if they’re making money or not. We want to help our landlords to make good investments and good decisions, so that they can become profitable and buy more rental properties and have more fun growing their wealth.
The Potential Risks
There are some risks to taking the plunge and becoming a landlord. Sometimes tenants don’t pay the rent. Sometimes there’s damage to the property either by the tenant or by natural disasters. Lots of things can always go wrong. However, we work really hard to make sure we’re putting great tenants in place who are going to take care of your property and treat it as their own.
We do routine walkthroughs so that we can catch any damage before a small thing becomes a big thing. We also offer home warranties for landlords that can help mitigate those unexpected expenses. While we do a lot to try to mitigate those damages, it’s still a possibility, so we highly recommend landlords have some reserve money set aside just in case those things happen. Being a landlord is not for everyone, but we do the best we can to make it a profitable venture for you.