Being a Landlord in Retirement
Many retirees consider becoming landlords as a way to supplement their retirement income. Rental properties can provide a steady stream of income, but being a landlord also comes with unforeseen responsibilities and challenges.
At Classic Property Management, we put our property management skills to the test to help Dallas landlords make running their rental business profitable.
Let’s get into how we can help retirees weigh the ultimate pros and cons when deciding if being a landlord is right for them.
What Should Retirees Consider Before Becoming Landlords?
If you’re a retiree thinking about managing rental properties, here are some important factors to consider beforehand.
Upfront Costs of Landlordship
Can you afford the upfront costs? Buying investment properties requires significant capital, even with financing. Before you dive into this level of entrepreneurship, meet with a finance expert and review your current standing.
Ensure you have the savings and projected rental income to cover mortgage payments.
Be Ready to Handle Emergency Property Management Duties
Maintaining properties and dealing with tenant issues can be a job in itself. Even if you know you’ll be able to keep up with standard maintenance, emergencies arise, and quick repairs are paramount for keeping a good renter happy.
You may not have the know-how to handle a massive plumbing or electrical break, and will need to have a reliable vendor on-hand to come out as soon as possible.
Many retirees don’t have this experience or connections right away. Working with a management team like Classic Property Management can help you stay up to speed with even the most unexpected management duties.
Can You Manage the Stress?
Issues like late rent payments, property damage, and difficult tenants can negatively impact your retirement. Determine if you have the bandwidth to take on this stress.
Responsibilities of Being a Landlord
Owning and managing rental properties comes with a variety of core responsibilities. Failing to properly fulfill them could lead to legal issues or conflicts with tenants. Responsibilities retiree landlords must handle include:
- Marketing vacancies and screening tenant applications
- Completing necessary repairs and maintenance
- Ensuring properties meet state rental requirements
- Collecting monthly rent payments
- Addressing complaints and problems reported by tenants
- Renewing leases and conducting periodic inspections
For many retirees, the time commitments required to properly manage properties can pose challenges. So, hiring a team like ours can help you remain responsive to tenant needs with ease. Trust us to help you prioritize your renters and preserve a positive tenant/landlord relationship.
Benefits of Being a Landlord in Retirement
While landlording presents some downsides, there are also advantages that retirees can benefit from by generating rental income,
Rent payments provide regular income to support retirement living expenses. Property appreciation over longer-term ownership also builds net worth.
Costs like mortgage interest, repairs, property taxes, insurance, etc. are tax deductible. Aside from standard deductions, depreciation deductions also lower taxable rental income.
Owning rental properties creates an opportunity for retirees to use other people’s money in the form of a mortgage to acquire additional assets.
Finally, being a landlord can help you build wealth for your heirs. Properties can be deeded to beneficiaries in the future. Or, sale proceeds help grow inheritances to pass down.
Challenges of Being a Landlord in Retirement
We mentioned there would be challenges. Let’s take a look at some of the biggest challenges beyond emergency repairs.
- Dealing with increased regulations and legal liability
- Filling vacancies quickly to minimize income losses
- Phone calls/emails from tenants at all hours with complaints
- Covering major repairs or costs if tenants cause excessive property damage
- Physically showing properties and completing maintenance tasks as an older adult
- Monitoring properties closely to avoid illegal activity issues that could arise with problem tenants
Simplify Being a Landlord in Retirement with Classic Property Management
If you’re a retiree in Dallas, TX, and are ready to take on the mantle of being a landlord, don’t take the journey alone. Let Classic Property Management help you make the most of your property management venture.
We have decades of experience managing Dallas properties and can help you with everything from rent collection to emergency repairs.
We’re ready to make your dreams come true. Contact us today to learn more about our services.
