What are the pros and cons of being a landlord?

Question

Zippia Team · Accepted Answer

The pros of being a landlord are additional income and making a good investment, while the cons include unknown occupancy rates and potential unexpected costs. Here is a more detailed look at the pros and cons of being a landlord:

Pros:

Additional Income. A rental property, when it is earning more money than the cost of upkeep, is a wonderful way to receive additional income. Over time, that income can add up, even if it's a small amount. Just $200 a month will give you $12,000 after 5 years.
Good Investment. A well-maintained property will most likely continue to gain value over time. Rentals mean that while you will make income short term, you will hopefully be increasing the value of your property as well so if you were to ever sell, you could also make a profit there.

Cons:

Unknown Occupancy Rates. Landlords make money from the rent they receive on their properties. Any time you are without tenants, you will lose money. You can work hard to have happy tenants to keep them at your property, but sometimes outside influences make it difficult to keep your rentals occupied.
Unexpected Costs. One thing landlords need to do is to expect the unexpected. Pipes could burst or heaters could stop working. Your tenants will expect you to be able to fix these issues in a quick and precise manner.