Closing thoughts on being a landlord

Owning rental property purchased at the right price, properly maintained and properly managed is one of the best investments you can own. If it is paid off or even if you have a mortgage that will sometimes be paid off, rental property can be a great source of extra income for years to come. It is also a great hedge against inflation as rents typically go up in an inflationary period yet your carrying costs on the property typically stay fairly fixed. Especially if you have a fixed mortgage that is getting paid off courtesy of your tenant with inflation adjusted rent payments!

Buying a property that generates rent payments that don’t cover your monthly expenses is never a good idea. If you are hoping for inflation and assuming your monthly loss is only temporary, you aRE putting yourself in a precarious position. You might get lucky and your property’s value and rent rate will increase to make you cash flow positive, or you might get to experience a repeat of the 2007 financial crisis where everything changed and the housing market crashed.

Like any investment, you need to have a margin of safety, especially when it comes to your cash flow. If financial risk keeps you up at night make sure you don’t buy a property that puts you in the position of being over extended.

The key to being a successful landlord starts with the right property purchased at the right price, properly maintained and occupied by a tenant that has been thoroughly screened and wants to stay for a long as you are willing to rent to them. It’s the imaginary place we call “landlord nirvana” and with a little work and the right market, you too can achieve it!

Discover Your Property's Earning Potential

Let’s dive a little bit deeper into the exact process that Karma Property Management uses to manage each and every one of our rental homes.