Peak rental season is approaching, and a new set of landlords could be entering the market. Zillow economists predicted that 2023 would bring a surge in first-time landlords after record-low mortgage rates spurred increased investment in second homes in 2020 and 2021. In March 2023, Zillow saw a 22% year-over-year increase in landlords listing their properties for the first time. But being a landlord can be time consuming. Here are the biggest hassels of property management.
According to Zillow’s survey data, almost all landlords (92%) said repairs or maintenance were among the top three most demanding responsibilities of managing a rental property, and 40% considered it the No. 1 most burdensome. Screening tenants (reading applications, completing background checks and credit checks) was a close second, with 71% of landlords reporting it among their top three most burdensome activities.
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More than one-third of landlords (36%) said they wished they would have known how hard it would be to find reliable renters. As well as managing the rental (communicating with tenants, accounting, etc.) was more time-consuming than they had anticipated. Thirty-four percent also noted that they wished they would have known the leasing process would take more effort than expected. This includes things like processing applications, scheduling tours, writing a lease, etc.
“Investing in a rental property can provide reliable income and housing for a renter who needs it. But it’s crucial for landlords to understand the responsibilities,” said Manny Garcia. He’s a population scientist at Zillow. “Many landlords wish they had known more about the effort required to find tenants. And keep the property in good condition.”
Story attributed to Zillow.
