Ignite FB Tracking PixelWould You Make A Good Landlord? - Tracye Thompson
Would You Make A Good Landlord?

by Tracye Thompson 04/14/2019

So, you want to buy a property and offset it with rental income, but a multi-family or apartment complex is a bit too rich for your bank account? No problem! Most of the steady increase in new renters comes from young millennials, and you can cash in on this increase as well by buying just a slightly larger property. Renting out rooms to students, or the other half of a duplex is a great way to supplement your income or offset that larger house purchase you don't completely fill yet.

Some layouts are better for segregating (for privacy) and renting out than others. Look for homes with secondary entrances, guest houses, separate parking, and multiple bathrooms or a finished basement with its own bathroom to ask for the highest rents. Your agent can help you find these properties; they are experts in the needs of potential landlords.

Owning and Renting a Duplex

Duplexes have some significant income advantages, especially for new investors. If you're planning to live in one of the units for at least a year, you'll qualify for FHA loans that can cover over 90 percent of the property value. Additionally, you can rent out the other side to offset your payments. That lets you be both a homeowner and a landlord at the same time, whereas if you were to purchase a single-family home with an FHA loan, you would still have to live in it for a year before renting it out, cutting down on your potential income. The downside of living in and renting out your duplex is proximity. You typically share a wall with your tenants, which means very little is hidden from them, and you're always on call if they need something. 

You can also rent out your duplex to your elderly parents or grown children, which allows you to be together while having separation and privacy.

Being a Landlord

No matter what size your rental property, from a single room to an apartment complex, you are responsible for the property. That means all maintenance, landscaping, upgrades, appliances, emergencies, and anything else that crops up is yours to take care of in a timely manner. Be sure to check your state and local laws for the specific landlord requirements and tenants’ rights in your area.

Next time you make that open house list, be sure to ask about properties good for sharing with a tenant. Your realtor can help!

About the Author

Author
Tracye Thompson
Originally from central Florida, Tracye came to Northern Virginia after a 20-year military career. The Marine Corps took her too many places around the globe as she worked through the ranks. Tracye has taken those experiences and applied them to good business practices. Buyers and sellers appreciate her systematic approach to their real estate. She ensures that her clients are well informed, which enables them to make all of the decisions required in the real estate transaction. Tracye delivers a level of service that consistently exceeds her clients’ expectations, which accounts for the majority of her business comes from word-of-mouth referrals. She is a resident of Stafford and assists clients throughout Prince William County and Fredericksburg. Tracye knows the area and understands how economic cycles affect the market on a daily basis. She helps her clients to navigate the often complex steps of a purchase or sale, from the first meeting to the closing table. If you are ready to make the commitment to move forward on your next home, call or email Tracye for the information and assistance you can trust.