Have you ever thought about becoming a landlord? Now may be a good time. The Urban Institute released a report with data detailing how the number of baby boomer renters is going to spike in the next 15 years. Because this phenomenon is a once-in-a-lifetime opportunity for property owners and landlords, you can think about the benefits and costs associated with renting out a property.
The number of baby boomer renters is expected to more than double from 2010 to 2030, so weigh your options to determine whether or not you should invest in rental property, becoming a landlord.
Why you should become a landlord
- It’s a medium for long-term wealth. The road to long-term wealth is a reason you should become a landlord, because you can make an investment in an apartment building and then collect rent from the residents to make money over time.
- It’s a route to retirement savings. This secret to adequate retirement savings is a second reason you should become a landlord, given that you can put the extra income into a retirement account alongside your Social Security and 401(k) income.
- It’s an avenue to extra cash. A source of extra cash is a third reason you should become a landlord, because you can borrow money to buy a building, let the renters pay off the mortgage and then profit from the net income after every set of bills is paid.
Why you should not become a landlord
- It’s a time-consuming endeavor. The guarantee of a secure financial future comes at a price if you’re a landlord, because you’ll have to dedicate time at night and on the weekends to making repairs, dealing with tenants and more.
- It’s a risky pastime. This prosperous retirement plan is the result of hard work if you become a landlord, given that you will have to solve conflicts with subcontractors, lenders and business partners.
- It’s an uncertain undertaking. A plump savings account is the end goal of your time in real estate as a landlord, because you will have to balance your flow of loans and tenants successfully to stay afloat.
Despite the drawbacks, however, it can be a great opportunity, and it’s worth thinking about. The number of seniors living in rental units is expected to go from 5.8 million to 12.2 million over the course of the next two decades. Because this trend is something every property owner and landlord should pay attention to moving forward, it’s also a unique opportunity for you to become a landlord and cater to this growing population of baby boomer renters.
A plan to invest in a rental property to work as a landlord could pay off over the next few years, so decide today whether or not this occupation is right for you to help secure your financial future. If you want to explore investment properties, give us a call.
