It’s no secret that the coronavirus pandemic has taken a toll on the economy. Businesses have closed their doors, laid off employees, and struggled to keep up with bills. So you may be wondering how landlords are managing during these times. In many cases, they’re doing just fine. Some are even thriving. Here’s a look at why landlords are booming during the pandemic.
More Demand for Rentals
The pandemic has led to a decrease in the number of people buying homes. There are three main reasons for this:
Employee Layoffs
The pandemic has seen one of the highest layoffs in recent history. As a result, many businesses have closed their doors and laid off employees, leaving them jobless. For many people, the stability that comes with homeownership is a much-needed safety net. Without this stability, they’re more likely to rent than buy.
Fluctuating Markets
The pandemic has caused volatility in the financial markets. This makes it risky for many individuals to invest all their money into one asset – like a home. So instead, they’ve opted to put their money into rental properties where there’s less risk involved.
Increased Home Prices
Home prices have increased since the pandemic began. In addition, many homeowners have dramatically seen their home prices grow thanks to increased demand in certain areas. As a result, homes cost more than $400,000, making them less affordable for many Americans.
Renters Are Staying Put
One of the main reasons landlords are still doing well during the pandemic is that renters are staying put. With so much uncertainty in the world, many people feel it’s safer to stay put rather than move to a new place. That means less turnover for landlords, which is always a good thing.
People are also working more from home, which means they no longer need to live in an expensive city center. That’s leading some renters to move out of big cities and into more affordable suburbs or smaller towns. And that’s good news for landlords in those areas.
All in all, things are looking pretty good for landlords these days, despite the challenges posed by the pandemic. So if you want to become a landlord, follow these tips to start your career!
Find the Right Property
Not all properties are created equal, and not all will suit you. When looking for a rental property, it’s essential to consider location, size, price, and amenities. You’ll also want to ensure that the property is in good condition and meets all local building codes and regulations. Once you’ve found a property that meets your needs, it’s time to move on to the next step.
Mortgage
The next step in becoming a landlord is to get a mortgage, even if you have the cash to purchase a property. You should always shop for your area’s best and most affordable mortgage rates. Once you’ve found that, apply and sign the contract.
There are many benefits that a mortgage can give you. First, there’s the possibility of reinvestment. This can decrease your mortgage payments over time, which is always good news.
There’s also the possibility of tax benefits. For example, many landlords can claim their mortgage payment on their taxes as a deduction, reducing their overall tax liability. Check with an accountant to learn more about these benefits and how they can help you during tax season!
Screen Your Tenants
Finding qualified tenants is one of the most critical steps in becoming a successful landlord. You’ll want to screen your tenants carefully to ensure they’re reliable and responsible. Check their credit score, employment, and rental history before making your final decision.
Manage Your Property
Once you’ve found qualified tenants, staying on top is essential to ensure your property is well-maintained. This includes regularly inspecting the property, responding to maintenance requests promptly, and enforcing the terms of the lease agreement. By properly managing your property, you can avoid many common problems that landlords face.
Know When To Seek Help
There’s no shame in admitting that you need help from time to time. However, if you’re feeling overwhelmed or having difficulty resolving a problem with a tenant, don’t hesitate to seek professional assistance from an experienced landlord or property manager.
Becoming a landlord is a great way to make money, but it’s also a big responsibility. By following these tips, you can help ensure your success as a landlord and avoid the many common problems that landlords face. This can ensure you’re ahead and taking advantage of the market today.