We’ve all had or have a landlord, at least most of us. Although you might not like your landlord, you must admit you need the housing services. Being a landlord isn’t as complex and time-consuming as it appears to be. Here are the top seven benefits of becoming a landlord:
Regular income.
Renting or leasing property is an excellent way of earning passive income. At the end of every year (depending on how payments are spread), you’ll receive a bulk amount of cash. This sum could be re-invested in other ventures or used for upkeep like paying fees and bills.
Long-term security.
Rental properties are a great way of securing your future. They can serve as a long-term security plan. It also serves as a great way of leaving something behind for your kids. In the worst-case scenario, you can use your property yourself. It is a good way to diversify your sources of income.
The flexibility of managing an investment.
Being a landlord gives you the absolute freedom to manage your properties like you would a business. You get to be the sole decision maker, deciding costs, terms, contracts, whom to take in, when to sell, and so on. Equally, you benefit from all the profits as well as being the principal decision maker and managing properties don’t have to interfere with your job or running other businesses.
Flexibility to sell at the right time.
If the market conditions are right, you can decide to sell your property at any time. Generally, depending on where your property is located, your property should appreciate in value over time. This in itself presents a good ROI.
Property value appreciation.
Renting out your property gives you time to hold on to your property while it appreciates. You earn both ways, from appreciation and collecting monthly or yearly rent. Owning property in Nairobi is a big win; Nairobi is currently the most expensive city to rent property in East Africa. Owning property in Nairobi also increases higher chances of ROI as the value appreciates in just a few years.
You gain confidence as a business owner.
Owning and managing property makes you more responsible and confident as a business owner. You acquire skills in the process of managing your property and tenants. These skills can be applied to other areas of your life, making you a better person overall.
Good retirement plan.
Renting out property is an excellent way of securing retirement funds. It serves as a source of steady income without any form of extra work. The money gotten can be re-invested in other ventures.
