As a landlord approaches retirement, he or she must answer the question of whether or not they will keep the rental properties or sell them and pocket the money. While there are valid reasons to let go of the rentals and streamline your portfolio, there are also many good reasons to continue being a landlord.
If you need help making this big decision, here are three of the most compelling reasons to continue.
1. It's a Stream of Income
Many retirees' biggest concern is running out of money before they die. If you are living off of the withdrawals from a retirement account, this is a distinct possibility. But having a steady, monthly stream of income is a good way to protect yourself against such an outcome.
The key to making this income useful is to be able to keep up with inflation and market values. But since many properties have increased in value and decreased in debt loads, an older landlord generally makes a larger profit as time goes by — a good thing for retirees.
2. You Can Hire Help
What if you don't feel that you can keep up with the work of being a landlord? This very real worry can largely be assuaged when you realize that you can hire professional assistance to handle most tasks.
Property management companies, for example, do everything from taking payments and tracking expenses to finding vendors and managing tenant disputes. You can hire such a service to do as little or as much as you need, and they will generally only have to involve the owners when a matter cannot be resolved by their staff and experts.
3. You Won't Be Bored
When they stop working for a living, a retiree often finds themselves wondering what to do with their time and energy. This is particularly a problem among younger retirees who still have a lot to give. But a landlord has work to do, and they will be kept busy and active on a regular basis. Because you can outsource unwanted tasks to a property manager or vendors, you can spend your time on aspects you actually enjoy.
The financial and emotional benefits of continuing as an active landlord often outweigh the desire to simplify. And because modern landlords can get help with a variety of duties, they have more choices than ever before. Before making your decision, start by consulting with a property management company in your area to learn about all your options.