Landlords, you are a rare breed. In the United States, estimates suggest that only about 7% of the population owns rental properties.
For most, being a landlord is an intentional way to boost your ROI. But what if you become a landlord without planning to, wanting to, and perhaps completely on accident? In that case, you belong to an extra special group: accidental landlords.
Accidental landlords are those who have happened upon property by chance, whether by inheritance or other means. It puts a sudden, heavy financial obligation over your head.
Today, we discuss your options should you become one in Milwaukee.
Accidental Landlords Should Decide to Rent or Sell
Unless you plan on living in your new windfall property, you only have two choices: rent or sell. Both come with their unique advantages and disadvantages.
Advantages and Disadvantages of Selling
If you decide to sell, you can't choose a better moment than now. Housing prices are at historic highs. Housing is in high demand, so you won't struggle to find interested buyers.
That said, selling a house is a lot of work and is a one-time lump sum payment. There's no opportunity for a long-term, passive income stream. Plus, you will incur a lot of costs for a real estate agent or marketing expenses.
Advantages and Disadvantages of Renting
Renting out property allows you to stretch out your investment's return over a longer period. Like with selling a house, you will never struggle with finding tenants. You can delegate the challenges of renting to property management services, especially as a first-time landlord.
However, renting leads to a smaller passive income stream that would take years to pay off the mortgage. Renting usually only works as a side income. You would need to invest in more properties to make it a full-time job.
Get a Property Manager
If you decide to rent rather than sell, then we recommend hiring property management services. Think of this as a hands-off way to manage your property and still pull a decent ROI.
This is the best solution for those accidental landlords who don't have the time or interest in managing property. This allows you to prevent vacancies, perform background checks, and manage tenant issues like maintenance. Your property manager will only contact you when there's a problem that requires your input.
Plus, they can be a helpful source of information as you navigate this new world of real estate and renting. They work to serve you, so they are all too happy to answer any questions you have.
Manage with PMI
Accidental landlords are people who find themselves with the burden of a property whether they want it or not. They can sell it and make a big upfront profit, though they won't get any future returns. Renting is preferable in the long term and goes a lot easier with the help of property management services.
PMI Property Pros brings 20 years of property management experience to the table. Whether you're an accidental landlord or an aspiring first-time investor, we can help you maximize ROI. Get started by finding out your property's earning potential.
