Realty Executives

Would You Make A Good Landlord?

by Susan Christy 08/04/2019

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

Susan Christy

Hello, and thank you for visiting!

When it comes to real estate experience, few compare to Susan Christy. As a full-time Realtor for over 30 years, Susan has been successfully selling and finding homes for her clients since 1987, and her in-depth knowledge of the real estate process is hard to match. There are few challenges Susan hasn’t experienced and successfully resolved. She has not only the expertise to seamlessly close a real estate transaction, but the personal skills to instill a comfortable confidence, putting her clients at ease. She carefully listens, puts a plan in place, and follows through to the close of escrow and beyond. Susan is the real estate professional with the tact and skill to negotiate the highest return for her sellers and best possible price for her buyers: the true professional you want on your side.  

Susan holds a Bachelor’s degree in Psychology and a Master’s Degree in Education from Arizona State University and taught special education for four years prior to beginning her real estate career in 1987. She was raised in the Arcadia area of East Phoenix, where she has also raised her two daughters. Susan has been affiliated with Realty Executives for over 20 years, among the most highly respected real estate brokerages in Arizona, and has garnered many honors for superior sales performance, including the Phoenix Association of Realtors President’s Roundtable, Realty Executives 100% Club and Executive Club awards and the Realtor.com Online Marketing Award of Excellence. In addition, her superior performance has earned her membership in the Top Agent Network (TAN), as well as the CLHMS (Certified Luxury Home Marketing Specialist) and National Association of Realtors BPOR (Broker Price Opinion Resource) designations. She maintains active membership in the Luxury Home Tour Inc. of Arizona and the Arcadia Camelback Tour.  

Specializing in Phoenix, Arcadia, Scottsdale, and Paradise Valley, but experienced and able to assist with real estate needs in nearly all areas of the Valley, her goal is to provide superior service second to none. Her clients can expect expert representation, communication, and negotiation skills from contract to close, intensive attention to detail throughout all phases of the real estate transaction, and above all, integrity and professionalism. She is: Client Focused. Results Driven. Please feel free to contact Susan at any time to discuss how she can best assist you with your real estate needs.