You're probably tired of hearing about "these uncertain times" we're all living through. We're all on the same page, we're all on unsteady ground, and we all have a lot of questions. One of the questions our Live Oak property management team has been asked a lot recently is, "Should I become a landlord right now?"
The answer to that question depends on a lot of factors. Despite the challenges we're all facing, there are many reasons why now might be a good time to think about starting a rental business! There are also a lot of crucial ways a property management company can help you get started.
A quick foreword: This article is not intended as a substitute for legal advice. If you're facing a challenge that requires the skills of a competent attorney or expert Live Oak property management, reach out to us for more guidance!
Uncertainty About Selling
Were you planning on selling your home but are now uncertain? The pandemic has thrown a wrench in practically every aspect of day-to-day life, and the real estate world has been far from unaffected. If you were getting ready to sell a property—or were even considering it—your plans have probably changed.
Not only is selling a house much more logistically challenging with all the social distancing and shutdowns during the pandemic, but it's also less certain that you'll be able to sell it for as much as you thought. We're teetering on the edge of a potential recession, and in all likelihood, entering a buyer's market for the foreseeable future. That means your house may not fetch the same price it would have just a few short months ago.
But there is another option: renting out your property. Having renters turns a home from dead weight into an income property, and gives you a steady stream of passive income while we all ride out the storm. Property values will almost certainly rise again—but in the meantime, you're building wealth and starting a business that could potentially keep money rolling in for a long time.
Extra Revenue in Uncertain Times
Now more than ever, any extra source of revenue is appreciated. With record numbers of people unemployed, under-employed or working from home, every little bit helps. If you can turn a house into an income property, so much the better. If your house is paid for, that's all cash in your pocket. But even if you're still paying off the mortgage, the money you make in rent can significantly lessen the sting of those monthly payments. There are significant tax advantages to renting out your property as well.
There's another factor to consider: now is a particularly good time to think about renting out your house instead of selling. As the pandemic begins to subside, demand for rentals is not likely to slow down. If anything, uncertainty about the future will steer more and more people away from buying a house and toward renting instead—particularly in rural areas.
Being a landlord is one of the safest positions to be in during challenging economic times. While we would never want to root for a recession, the evidence shows that when the housing market is hurting, rental businesses tend to get a boost. We saw the same thing happen during the 2008-2009 recession.
Partner With a Property Manager
Property managers can keep your rental property running at peak efficiency, so you can enjoy the passive income from renting your Live Oak home, without the constant responsibilities that come with being a landlord. Working with a Live Oak property management company is a great way to maximize your investment.
Property management services we offer include:
- Marketing and advertising
- Tenant screening and selection
- Full-service leasing
- Timely rent collection
- Regular inspections
- Efficient maintenance and repairs
- Strict and compliant evictions
- Comprehensive accounting services.
Are you looking for more information on becoming a landlord in challenging times? Contact us today to learn more about how our team at Real Property Management Campanas can help you get started. Our Live Oak property management team has weathered a lot of storms—and has years of experience operating rental properties through all conditions. We're here to help!
If you want to see a sample of what we can handle for you as your property management partner, take a look at our Collecting Rent in a Crisis Handbook!