Pitfalls of Being a LandLord

Owning rental properties seems like an easy, great way to make income on the side. How hard could it really be? But is this really "passive" income? Well, for one thing, dealing with tenants isn't always a walk in the park. Everyone’s heard a horror story or two about unruly or destructive renters. Even if you love the idea of providing people a place to live - managing them will certainly keep you busy. Most landlords find it much harder than expected actually.

So before you become one, have a look at the basic duties of being a landlord to tenants:

Being On-Call

You can't really be a landlord from afar unless you hire a property manager . Finding and taking care of the right tenant(s) will likely be the most time-consuming part of playing landlord to renters. You have to be on call every day. If the toilet's overflowing in the middle of the night, you have to deal with it. Also, if the toilet is overflowing while you’re abroad - you still have to take the call. Of course, being a local landlord has mutual benefits. Being nearby in case of emergencies means you can deal with them swiftly and efficiently.

Time Consuming

Some landlords can juggle their rental property duties with their full-time careers. Some discover that the latter is just as time-consuming (or more) than the former. Whether it's chasing down monthly rent checks, screening potential renters or scheduling repairs- one thing after another...you may find yourself increasingly pulled away from your job during the week, and your valuable time off during the weekend.

Money Pit

Rental properties are not cheap. Depending on the rent you collect from tenants, there may be little next to nothing left to put towards actually maintaining the property. Collecting high amounts of rent doesn’t necessarily offset the ongoing costs. Repairs, fixes, and updates can add up. It's also worth noting that a great market full of renters doesn't ensure your property is always going to be occupied. Unforeseen months when nobody is renting the place can be a big set back on your investment.

Stress

You’ve got a lot to juggle with rental properties, and you will worry about them constantly. If you own a rental property and want to get rid of it, you can get help.  Local home buyers in your area can help take the property off your hands if playing landlord isn't what you dreamed it to be. It depends on your market, but many parts of the country are undergoing a surge in demand for rental properties.