If you have some extra cash that you’re looking to invest or have extra space in your Michigan home, becoming a landlord may seem like a worthwhile venture. But as with all other careers, it’s not without its challenges.
The benefits of becoming a landlord
The real estate market in Michigan is growing, so there’s a good chance that you’ll find people looking to rent. Your main task is to advertise your property to find a tenant, which you can now do easily online or through word-of-mouth.
Becoming a landlord will also give you the opportunity to build equity in your property, which you can use as collateral for other investments or to sell the property later on and make a profit. Additionally, it can be a regular income stream if it gets rented.
The drawbacks
The first and most preeminent challenge to becoming a landlord is finding a suitable property to rent. Location plays a significant role in real estate, and you’ll want to make sure that your rental property is situated in an area where people will actually want to live.
You will also have to ensure that your property meets all the necessary safety standards and is up to code. This includes ensuring that there are working smoke detectors, carbon monoxide detectors, fire extinguishers on the premises, etc. Failing to do this can lead to legal trouble down the road.
This job may also require you to be a people person. This means offering good landlord and creditor services like responding to questions and concerns in a timely manner, being understanding when it comes to financial difficulties and generally just making your tenants feel comfortable.
Deciding whether to become a landlord will depend on your situation. If you have the time, energy and resources to make it a successful venture, it could be a great way to earn a living or expand your income streams. However, if you’re not prepared for the challenges that come with it, then it’s probably not worth your while.