Three of the biggest disadvantages of being a landlord in Queens.
Last time, I talked about the advantages of being a landlord in Queens. Today I want to bring you the second half of the picture and talk about the disadvantages. Despite the rental income and appreciation, being a landlord isn’t for everyone, and these disadvantages will help you decide if it’s right for you:
1. You must service your tenants. If the boiler breaks on a Saturday evening in the dead of winter, you’re going to get a call from your tenants. You have to be prepared to take those calls and deal with the repairs no matter the time. You can always hire a property management company to take care of this for you. However, they usually charge 20% to 25% of your gross income every month.
“Being a landlord isn’t for everyone.”
2. You have to be in compliance every year. In Queens, you have to show that you are in compliance with the law every year. You might have to fill out paperwork for the housing department or upgrade your insurance policies. You should think of it as another job. Even if you have the best property and the best tenants in the world, be prepared to spend time working on things that come up with the house.
3. The laws in Queens lean toward the tenant. If you get the kinds of tenants who complain a lot or flat out refuse to pay rent, the legal process can be very frustrating. You have to have funds set aside to pay for an attorney and cover the rent you were expecting to receive from the tenant. There are some things you can do to prevent this. The best way is to screen the tenant upfront by checking their credit, income, and references. Don’t be afraid to ask their previous landlords what they thought of them. You’ll get a much better idea of the type of tenant they will be.
If you have any questions about these disadvantages or real estate in general, feel free to call or email me. I would love to hear from you.
