Amid the millions of COVID-19 layoffs, you may be wondering whether being a landlord is worth the trouble. There has certainly been a great deal of news about whether or not renters would be able to make their rental payments! However, it turns out that owning Rent Estate™ may be a more stable source of income than many other industries right now. But becoming an investor with Washington DC homes for rent requires more than an empty property! Before becoming a landlord, it’s worth considering the work involved and if you think you can handle the responsibility.
If you were planning on selling your home, but you’re not so sure you should—or you could use an extra revenue stream during these uncertain times—think about turning that property into an investment! Then, maximize that new investment with an expert property management partner. This is the easiest way to get into Rent Estate™ as a first-time landlord, especially if you currently own a potential rental property you were planning to sell!
If you’re considering going the solo route, take a look at these five points worth noting before becoming a landlord during the coronavirus pandemic—and why you should be working with a partner.
1. Lower Interest Rates
Right now, interest rates are pretty low—and they might not last long. So if you’re considering becoming a landlord, you can lock-in low interest rates before the economy bounces back. Lower interest rates equal lower mortgage payments, which means that if you don’t already own Washington DC homes for rent, getting in on the ground floor is more affordable right now!
If you do own a home and you were thinking about a hard sale, lowered interest rates also mean you’ll have a harder time finding buyers right now. Mortgage restrictions have tightened as a result of the COVID-19 pandemic, and it’s likely that more people will continue to rent as a result of being edged out of the housing market.
With fewer qualified buyers and a rush of refinancings due to lower interest rates edging many people out of the market, a sale right now may not be in your best interest. While you wait for the market to recover, a spare home would make an excellent starter rental! People will always be looking for excellent housing in a competitive market like the DC area.
2. Less Competition—but Fewer Options
Since fewer people are buying homes as a result of the pandemic, you’ll face less competition when it comes to putting in offers on the homes you want if you intend to build a portfolio. It’s a buyer’s market, which means now’s the time to start putting in offers for the rental property you’re considering.
However, you might be looking at fewer options since seller traffic is about seven percent lower than before the pandemic, according to the National Association of Realtors. If fewer people are selling their homes, that means you won’t have as many options as you might have if it weren’t for COVID-19. This is one reason why starting with a property you already own gives new landlords a significant advantage.
3. Lower Home Prices
According to Fannie Mae, home prices will temporarily dip by 15 percent because of the novel Coronavirus pandemic. That means more money in your pocket and less money you have to borrow from the bank if you’re planning to buy. However, if you were thinking about selling a spare home instead of converting it into a rental property, that’s certainly an incentive not to sell!
The advantage of Washington DC homes for rent is that they can later be sold at any time once the market recovers. This gives you an opportunity to make rental income from a month-to-month lease until the market swings your way.
Maximizing Your Investment With Property Management
Becoming a landlord doesn’t have to mean dealing with all of the headaches of owning a rental property in the form of finding tenants, dealing with clogged drains or broken water heaters, and chasing down late rent. Partnering with an expert in Washington DC property management can help you avoid all of that—and more! The best property management companies will be able to guide you towards success and manage your investment properties for you.
Preparing to Become a Landlord During COVID-19
Now that you’ve got an idea of what to expect when buying a house and becoming a landlord during a pandemic, you can make an informed decision about whether it’s for you or not. Becoming a landlord in these trying times might make you skeptical, but with the right property management assistance, you can generate a decent income with fewer headaches.
Factoring in lower home prices, historically low-interest rates, and an increasing group of renters, becoming a landlord now could be a lucrative investment! If you’re ready to take the next steps toward becoming a landlord, let us tell you what your Washington DC homes for rent might be worth with a free rental price analysis!