WHO WANTS TO BE A MULTIFAMILY PROPERTY LANDLORD?

The thought of being a Landlord might send a shiver up your spine unless you know the true benefits of owning a multifamily property and how to overcome the fear of having tenants. Unlike owning a single family home and renting it out, owning a multifamily property with several units can give you a better income cash flow to cover your expenses, debt service and surprise repairs. If a tenant vacates in a single family home, 100% of your income is gone. With a multifamily property, if you have a vacancy, you have other tenants to offset the temporary loss of income you need to continue to maintain your property. If the multifamily property has enough units, (6 or more) you could hire a management company to deal with the day to day property maintenance, rent collections, leasing and interaction with tenants. Many new investors might think dealing with tenants is a nightmare. This is not necessarily true. Yes, there are tenants that can be a thorn in your side but they are far and few in between. Most tenants just want to live in a clean, safe environment, pay their rent and never hear from their Landlord. It is up to the multifamily property owner to act responsibly with his or her ownership and not view tenants as the enemy. If you provide excellent management of a property and have open communication with your tenants you will reap the benefits of solid returns even in a poor economy. In addition, owning one multifamily can open the door for building a portfolio of multifamily properties. Lenders like the collateral of a multifamily property. So, if you are willing to take the first step, the road ahead will bring you great rewards.