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Why You Should Think Twice About Being A Landlord

February 09, 2012 | Comments: 0 | Views: 146

We could go on and on listing the perks of being a landlord but that would not be a good resource for anyone looking to acquire a rental property. To decide whether a business is for you, you have to look at the pros and cons. We have already tackled the disadvantages of going into the business. And now, we will look into the real headaches for landlords.

Once you are a landlord, you have to think about how to get people to rent your property. Figures are not on your side though. Vacancy rates are up this year (2012) and it is not looking good for the near future. Although many people have lost their homes to foreclosure in recent years, it does not necessarily mean that they would be renting instead of buying a new one.

In fact, many landlords are now offering incentives just to attract tenants. As a landlord, you can offer things like a free rent for a month, discount for 90 days if the tenant recently lost a job, and other similar offers. Of course, this will have a negative effect on your profit.

Another thing that could make you decide that being a landlord is not the best investment is the history of applicants. In the past, if the potential tenant has a foreclosure or a personal bankruptcy on their records, landlords would not even entertain the application. Today though, with the recent economic downturn, landlords are paying more attention. This means more work for you to determine if they can keep their current job and pay the rent on time. The risk of getting a tenant skipping rent is now higher as a result.

Evictions are also taking longer today than in the past. Because of the number of foreclosures and other related things, the legal paperwork is taking longer to complete. This means that even if you take matters to the court, you would still have to wait for a long time before you can evict a bad tenant.

While these are definably serious problems for current landlords, does this make the business a bad choice for any one looking to invest? The quick answer is no. Your success in this business would depend on your management acumen and a slew of other things. The best thing for you to do if you are interested in this venture is to educate yourself as much as you can to avoid getting burned and losing a lot of money.

Elaine Bernabe invites you to visit Salt Lake Property Management to learn more information about property management and how to grow your rental property business.

Source: EzineArticles
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