While a surprising number of Americans own a second home, for most of them, it’s a small vacation spot they visit occasionally. Because taking on the work of becoming a landlord isn’t for everyone, there are a small number of people controlling the rental market. If you want to get your piece of the pie, becoming a landlord is easy and lucrative.
Here are five reasons to consider becoming a landlord this year.
1. Build Your Wealth
No matter what your financial situation is, it’s likely that you’re spending too much. There’s an almost innate problem all humans face because even as we earn more money, we find ways to spend more money. That’s why it’s important to build wealth which can’t be lost or spent away due to a catastrophic medical bill or a weekend in Vegas.
If you really want to invest in ways ensuring you’re always getting a strong return and building permanent wealth, then you need to buy property. Because buying up a bunch of properties that just sit there isn’t a lucrative idea, renting them out is a great way to help pay for maintenance while their value grows.
Wealth is challenging to build but because of the ability for property to steadily accrue value over time, it’s one of the best investments around. If you want to build permanent wealth, buying property and becoming a landlord is a surefire way to ensure you have a strong future for you and your family.
2. Build Your Community
One of the reasons people buy up property in cities, towns, and neighborhoods they love is to help build up their community. If you’ve come from limited means, you know how valuable it is to own property. As more people have found ways to revitalize neighborhoods and forgotten cities, buying up property has become a community building exercise.
When you own property in a community, you get to help make it look nice and attract new people to the region. In cities like Detroit that have suffered a brain drain and talent drought, people have built up their homes and bought neighboring properties. This helps to keep families in their homes and to bring more people to the area.
This helps to revitalize a local economy and even spurs the value of home prices. When done strategically, investing in property and becoming a landlord is more than just making money. It means turning communities around and showing people a new side of a city or neighborhood.
While gentrification is tricky business, if you really care about a region it’s easy to connect with other owners and create a real relationship with the community.
3. Constant, Passive Income
With every industry in flux because of technological changes, the one thing people will always need is a roof over their head. When you’re a landlord, you’ll have one asset there won’t be a shortage of demand for.
Constant passive income is great if you work in an unsteady or unstable industry. You’ll weather economic depressions better when you have income always arriving, every month.
As you get older, it’s harder to work. Fewer people have money saved up for retirement to sustain them for a long time. As long as you can handle a hammer, wrench, and a paintbrush, you’ll be able to keep constant income arriving at your doorstep.
If you want to pass this asset on to your kids, you can teach them about investing in new ways. Employ them to help you with maintenance and when they’ve shown enough mature responsibility and have their own careers going, hand it off to them.
4. Always Have a Roof Over Your Head
When you’re a landlord, you usually own more than one unit of property. Even if you only own one building, you’re sure to have at least two apartments or a large and small unit. Even if you only have one structure, with the property in your hand, you can add a small unit in the rear if necessary.
Having property means you can take risks in life. If you want to sell all your belongings and go on a year-long journey across Asia, you can keep your things at your property. When you get back, you’ll have someplace to stay while you realign your life.
There are so many more options when you’re a landlord you wouldn’t have otherwise. Similarly, if you have kids who are finished with college and starting their career, rent an apartment to them at a discounted price. This way you ensure they have someplace to stay with a landlord who’s trustworthy.
5. Invest In New Ways
Once you have one piece of property, the world of investing opens up before you. You’ll have the chance to invest in completely new ways.
If you have lots of properties, you have the chance to take out loans leveraged against what you own. Open up that bookstore you’ve always wanted or the bar you’ve dreamed of with a loan supported by your property.
If you need help with your own home, you can refinance one of your properties or get a loan that’s held up by a rental property. Since you show real income as a result, getting a loan should be a breeze.
Becoming a Landlord is Easy
Even if you don’t want to own a second home on your own, there are ways to invest in real estate which make you part owner with multiple parties. Becoming a landlord has never been easier than it is now. When you choose to be a landlord, you give other people the opportunity for affordable housing while building your own wealth.