To be the renter or the rentee?

Rent is constantly rising, no matter where you go and your landlord’s the only one winning. It’s the right time to rethink your strategy and ask yourself if being a landlord would be more suitable than being a tenant. CNBC made some good points in their article about rising rents and how landlords are making some cold, hard cash from their tenants.

What’s not to like about being a landlord? If you’re a tenant (a renter), you must already know that a good percentage of your paycheck turns into rent money. Imagine being the receiver of a handful of people’s rent money every month. Pretty good, right?

Bills and expenses are starting to be worth so much more than the paycheck of every working-class citizen out there. Millenials aren’t as fearless as their parents and grandparents when it comes to purchasing property, so they’re the ones that are most likely to rent. There’s a surplus of millennials out there– they never seem to run out. Maybe investing and owning some property might be well suited if you’re the type of person that would rather receive rent money than give it.

Then again, if you’re 100% convinced that you should be a landlord instead of a tenant, never ever underestimate the expenses attached to owning a property. There’s always a catch with things that are just too good!

Do you have what it takes to be a landlord?

Well, do you? St. Louis Today has an interesting article up on their website that gives advice to people who want to invest in some property and become a landlord. The piece provides amazing financial advice for those who are keen on making some cash flow on the side. Then again, it also gave a fair warning for those who only think about the gains that they can get, and not the losses that they’d be sure to acquire such as operation expenses and taxes.

See, if you have the disposable money to just get a place and be a landlord, you have to weigh your options. Ask yourself, do you want a windfall profit? Or would you rather have small amounts trickling in every month instead?

If you chose the first one, then you have to spend money to earn money. Flipping houses only works well if the area’s property values are increasing. You better be ready to face unexpected expenses before you can sell it for a profit.

On the other hand, being a landlord may be more suitable for your tastes. But tread carefully! The money doesn’t depend on you alone, but also with the tenants that will rent a unit on your property.

So, what do you prefer? Flipper or landlord?