Buyers Guide: Becoming A Landlord

Becoming A Landlord

One of the trends for home buyers today is to find a home with a suite that can be rented out to help offset mortgage costs or create supplemental income.

It is no secret house prices continue to increase and the market can be a challenge for many. Homes can go for 10’s of thousands of dollars above asking price and make it difficult for people to find a home. The idea of renting out a “suite” or something like a basement room if there is a separate door has become more and more appealing. It presents a good opportunity for a buyer to mitigate the effects of maybe having to go higher in price than they wanted in order to secure a home.

While great in theory, you have to be certain you want to become a landlord and take on the responsibilities that come with that. Being a landlord is not for everyone. Let’s take a look at a couple different components of being a landlord to think about before making a decision.

First, remember that you will be living in close quarters with another person or persons or possibly a whole family. You are still in one house. Sounds and smells transfer easily, and you may be sharing common areas like a kitchen. Day to day you will most likely hear them and they'll be able to hear you. Be sure you understand this and are okay with it. It requires the two groups actively working together.

Second, don’t forget repairs. While not the traditional landlord/renter situation considering you own the house, you still have the responsibility to maintain the suite or area that you are renting out. This means you could potentially receive calls or messages when something needs to be fixed. Like any landlord, this could be at any time, during the day, middle of the night, a weekend, or while you are on vacation. Regardless, you’ll need to tend to the issue or problem.

Third, remember they need to hold up their end of the bargain. Whoever you end up renting too is going to be committed to payments and bills to you. You don’t want to become someone supporting you and your family and then add supporting potentially a whole additional family on top. Be sure whoever you share your home with is going to be able to pay the bills and pull their weight.

So, you’ve contemplated the above, what should you do next? Talk to those it affects. You may have feelings one way but someone else like you wife, kids, or dog, may have much different thoughts. Everyone needs to be onboard and the pros (added income) outweigh the cons (having someone you don’t know living in your home).

Pick your renter wisely, make sure it is someone you don't mind living with. The ideal situation is someone you already know that is looking to rent and it makes the arrangement much easier. You just want to be extremely careful about who you choose to share your home with. Once they sign on the dotted line, you are more or less locked in. It can be very hard to break that agreement and get them out if you decide you made the wrong decision.

Jump Realty is here to help you. Our agents can help you navigate all of these challenges and more. If you are in the market to buy, sell, rent, or lease, we can help you out. We pride ourselves on making our customers our number one priority. We’ll make sure you when you have finished up your real estate experience with us, you are in the right place. Then we’ll check in again after that to make sure everything is still right. Contact us if you have any questions!

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