Being a landlord can be lucrative and rewarding. The financial gains, tax deductions, property value are all major perks. While these upsides are major, there are major downsides as well to being a landlord. Here are six reasons being a landlord can be a major headache and what you can do next.
1. Renovations add up
As properties age, they need a little more upkeep and maintenance. On top of that, some things may need a major overhaul and renovation. There could be plumbing issues or roof leaks that you have to take care of. Natural disasters hit and you may be on the hook after the property is faced with fire or water damage. There could be modifications you need to make to stay up to code. All of these things can take a toll on you and affect your bottom line. Suddenly your investment is seeming more like a sinking ship.
2. Tenant issues
Being a landlord means dealing with tenants. In an ideal world, they are good tenants and require minimal attention. But even just one bad tenant can be a nightmare for even the most patient landlord. You know, the ones whose rent is always late (if you’re lucky enough to get a payment at all). Dealing with this type of tenant can lead to a major headache with lawyers and collections in order to recover your income.
On top of that, there could be tenant disputes, noise complaints, or other violations that make your job difficult.
3. Staying informed
Before becoming a landlord you may have dreamed of sitting back and collecting rent checks. But you know that’s not how easy it is. You have to stay informed and up-to-date about all property legislation and laws pertaining to landlords. You want to be aware of any state or federal policies that could affect you, so you can limit your risk of lawsuits or unruly fines. All of this takes some time and effort.
4. Time commitment
Maybe you became a landlord because you thought it was a perfect way to spend your retirement. Easy money right? Think again. Being a landlord requires a time commitment — and it’s not always on your time. Tenant issues can arise at any time. If you don’t have a property manager, guess who’s getting the call at 3am when there’s an emergency? You.
On top of that, if you want to avoid issues with tenants you have to make the time to screen them properly and do your due diligence. If there is a vacancy, you need to make the time to market your property. All of these things can chip away at your free time and can require a huge investment of your time. Time is a finite resource — one that you cannot get back, so ask yourself how much time are you really spending on all of this and is it worth it?
5. Dealing with difficult situations
As a landlord, it’s not an ‘if’ you will have to deal with difficult situations, it’s when will you have to deal with difficult situations. No landlord is immune from troubles. There can be tenant disputes that you have to resolve. You might have to be the bad guy and tell a tenant something they don’t want to hear. Worse yet, you may have to evict someone which is no fun.
You must be able to withstand a lot of these difficulties to be a successful landlord. But at some point you may grow tiresome of always putting fires out.
Where you are a landlord also matters. One day the neighborhood may be hot, in a few years, it’s not. In California, there are very few places to be a landlord as people are leaving in droves to more affordable locales. It could be time to swap out your California real estate and use the appreciation to your advantage by scooping up property in a different state.
What to do if you’re tired of being a landlord
If you’re feeling stuck and tired of being a landlord, the good news is that you do have options! Of course, if your property is market ready you could work with a realtor. But going this route requires some caution as many realtors actually have very little experience. Not only that but the fees could set you back six percent.
What if the property is not market ready though? You might be overwhelmed by the idea of renovating everything or feel forced into selling at a steep discount.
Instead of doing that, Sundae is here to help you get the best return on your property. If your home is not market ready but you want to release the responsibility of being a landlord, you can work with us. We’ve seen time and time again people getting small returns on their property and we want to change that. In our world, the seller comes first and we want to provide the most financial value. We can guarantee giving you the highest price on your home. We’re lucky enough to be able to do this because we work at a large scale so we don’t need to take any fees from you.
To help make this happen, we offer $10,000 in cash advances to help you move. If you need any advice or want to talk through things, get in touch with us. We’re here to help.
If you’re feeling tired of being a landlord but your house is not in great condition, we can help you. If you want to sell your property now in preparation for an economic downturn, we can give you the highest price out there. You don’t have to be stuck in a job like being a landlord forever if you don’t want to. And you don’t have to be shortchanged either, with the help of Sundae.