What you should know when thinking about becoming a landlord in retirement

Ilyce Glink and Samuel J. Tamkin report on the costs and benefits associated with becoming a landlord of a formerly primary residence as additional means for retirement.

Living in a home that you own is quite different than becoming a landlord of your former primary residence. For that, you need to make sure you want to be a landlord and are willing to deal with tenants, their issues and the possibility that you might not have a tenant if you can’t rent the property. All of these issues are also “risks,” but you might have more control over the risks in vetting your tenants and by deciding how to price your home for rent. The purchase of real estate is not a liquid investment, but if you have a good tenant and you have good cash flow from the home, that cash flow can help supplement your retirement income far beyond what you’d get in stocks or bonds, and certainly more than you’d get in cash. One thing for you to consider is what your home is worth and if you sold the home what you would do with that cash.

Overall the authors encourage you to run the numbers, become knowledgeable on how to market real estate, understand how long it takes to rent homes in your area, see what might need fixing in your home and then decide whether becoming a landlord is right for you.

See full post at: What you should know when thinking about becoming a landlord in retirement – The Washington Post

Posted by Jacqueline Groccia, Associate Editor, Wealth Strategies Journal.