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Being a landlord is a job because you have to expect your tenants to stop paying their rent at some random time and when they finally move out leave a big mess and a lot of damage. And while living there and paying rent they will often stridently insist on a lot of repairs, even for damage they did, claiming it wasn't their fault.
But there are things you can do. You can give them a rent discount if they agree to be responsible for repairs. You can put golden handcuffs on them by making the rent discount big enough that they would have to pay a lot more per month if they moved to a different rental. You can give them a big bonus if/when you sell the property. That would give them an incentive to keep it in marketable condition, and to stay there a long time hoping to get the bonus. And you can reject tenants who won't pay an extra big security deposit. The lower their credit scores, the bigger the deposit should be.
By doing all of the above, you can take most of the work out of it, to make it an investment instead of a job. Some tenants will give you bad luck and reduce your ROI. Others will give you good luck and increase your ROI. Like any investment. And any work you seem to have to do, you can always hire other people to do it, like any investment. How much work is it to call a cleaning company or hire a handyman to do your repairs?
Investing in stocks is a job because you have to know what stocks to invest in and when to sell them and what stocks to buy in their place. Some jobs are more time consuming than others. But where do you draw the line between a job and an investment?
Buying spy, vti or VOO doesn't take much thought, work or research. Trying to argue that managing an equity portfolio is "work" is comical I feel and pretending like it would be anything like the work of being a landlord is beyond silly
Buying spy, vti or VOO doesn't take much thought, work or research. Trying to argue that managing an equity portfolio is "work" is comical I feel and pretending like it would be anything like the work of being a landlord is beyond silly
You're describing the most passive mutual fund investor. If you read these threads you'll see people dissecting very minute points of the global economy and currency wars, etc. with an incredible level of detail. Stuff that goes way beyond what the layman can comprehend.
Those are the investors that possibly spend more time studying the equities markets than a real landlord spends operating rentals. Add to them the "medium intensity" investors/traders and the average hour-by-hour time by the average investor probably tops what a small owner-op landlord spends.
Some of these market experts could probably build/operate a rental business very well with all the time they spend on markets.
And the risk/stress is there on both sides. A LL can have a bad lease and an investor can have a bad market.
Equities have not "stagnated since 2000". REITS go through cycles. Don't get caught in the next real estate crash. Some believe that interest rates are the only thing holding up real estate.
Equities have not "stagnated since 2000". REITS go through cycles. Don't get caught in the next real estate crash. Some believe that interest rates are the only thing holding up real estate.
Those are the investors that possibly spend more time studying the equities markets than a real landlord spends operating rentals. Add to them the "medium intensity" investors/traders and the average hour-by-hour time by the average investor probably tops what a small owner-op landlord spends.
I would much rather spend my time looking at the equities market than repairing stopped up plumbing and repairing damages and painting and dealing with bad tenants. I have heard enough horror stories that I never want to be a landlord. Ugh.
Buying spy, vti or VOO doesn't take much thought, work or research. Trying to argue that managing an equity portfolio is "work" is comical I feel and pretending like it would be anything like the work of being a landlord is beyond silly
i have never spent more then 30 seconds a week on my equity portfolio in almost 30 years . no reason to when it is funds
You're describing the most passive mutual fund investor. If you read these threads you'll see people dissecting very minute points of the global economy and currency wars, etc. with an incredible level of detail. Stuff that goes way beyond what the layman can comprehend.
Those are the investors that possibly spend more time studying the equities markets than a real landlord spends operating rentals. Add to them the "medium intensity" investors/traders and the average hour-by-hour time by the average investor probably tops what a small owner-op landlord spends.
Some of these market experts could probably build/operate a rental business very well with all the time they spend on markets.
And the risk/stress is there on both sides. A LL can have a bad lease and an investor can have a bad market.
they can spend their time wasting it on the daily noise but it likely adds not one penny of value to their investing . more then likely it hurts it as they react to things they shouldn't
I would much rather spend my time looking at the equities market than repairing stopped up plumbing and repairing damages and painting and dealing with bad tenants. I have heard enough horror stories that I never want to be a landlord. Ugh.
i rather do neither but i would certainly put reading annual reports over dealing with tenants and issues at property's .
in retirement last thing i want to be is a landlord and we spent more then a decade selling off our real estate holdings just so we don't have to .
they may not be able to reliably pay the rent either . many are to busy whining about things and have useless degrees rather then developing good needed job skills
Stocks dont pay the bills unless you've got 7 figures in your account. Rent is a necessity
rent is a necessity but that does not mean you have the dough to live where you would like or even pay the rent .
just about every landlord at some point have even good tenants get hit with the trifecta from landlord hell ILLNESS-JOB LOSS-DIVORCE . eventually it gets you and your tenants problems become your problems
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