3 little-known challenges of being a landlord
You don’t want to hide them.
- Owning a home has many advantages.
- There are also some less obvious downsides you might encounter.
- Consider the possibility of your property taxes going up, write down the maintenance you will be responsible for, and accept that you may be limited in the jobs you can do because you will have to sell your house to move.
You will often hear that owning a home has many advantages. And that’s definitely true.
When you own a home, you get equity in an asset that can increase in value over time. You could spend $300,000 on a house that is worth $600,000 by the time your mortgage is paid. At this point, you would have the potential to walk away with a huge profit.
Also, when you own a home, you don’t have to follow a landlord’s rules. That means you can do whatever you want with your space (as long as it doesn’t violate zoning laws) and bring home 15 dogs if you want.
But owning a home also comes with its own set of challenges. And some of them may be less obvious than others.
For example, it is clear that owning a house means having to pay extra things, like home insurance and repairs. But here are some lesser-known obstacles you might encounter.
1. Rising property taxes
Most people know that buying a house means taking on the financial burden of property taxes. But you may not realize how often property taxes can climb. In some areas, homes are appraised once a year, and each time your property is appraised, your tax bill may increase. This could make your house much harder to afford.
2. The time it takes to do the maintenance
When potential buyers think about maintaining their home, they tend to focus on the financial aspect. But you may not realize how time-consuming home maintenance can be.
For example, if you own a house with a yard, you might have to spend $500 on a lawn mower every few years. It’s bad enough. But remember that your lawn mower won’t work on its own. You may need to dedicate an hour or more per week to maintaining your lawn. And that’s just one of the many things to take care of when owning a home.
3. Being limited in job opportunities
When you own a home, selling it can take time. And it is also important to sell at the right time. You don’t want to list your home when the real estate market is down because it could cost you money.
Now you might be thinking, “Okay, I’ll stick around during times when the house values aren’t good.” But what if you are offered a great job in another part of the country? Owning a house could prevent you from jumping on a fabulous offer. On the other hand, if you are a tenant with a few months left on your lease, you may be able to find someone to take over your lease or pay a small fee to get you out.
Look at the big picture
Owning a home can certainly be rewarding. But it can also be difficult. Make sure you understand the pitfalls you might encounter if you become a homeowner.
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