About to retire, worried about Landloring
I'm 46, and I will be early-retiring........latest by February 1st so right around the corner and I am very concerned about this 'no eviction' mindset that is becoming more pervasive.
Until now, earning a rather realistic 4-5% annual return by renting out homes was a key part of my nest-egg-management plan. I believe that America's population will increase, and I feel that everyone needs a place to sleep, rather basic theory and furthermore I truly want to diversify from 'paper assets' the best I can and 30-35% allocated in physical homes is my plan.
OK, I AM NOT TRYING TO LAUNCH A POLITICAL DISCUSSION. The following are just for example purposes and I will not state my opinion.
To me, it's not about the CARES act - that is *today*. To me it's about trends and what is coming in the future. And if you look at issues from minnimum wage hikes, to paid family leave, to marriage laws....it all starts with rhetoric that eventually becomes part of the national dialogue and then eventually finds its way into law.
If you look around, you'll see reports of people talking "no evictions!" and graffiti to that effect. and you don't see much pushback. Again...it all starts with words.
Also, look at today's new crop of political leaders. Look at their mindset and philosophy. Ask yourself....are they more favoring of landlords, or more sympathetic to memes and trends du jour such as "no evictions!".
I would say that as the generation and mindset shift continues..... there *will* be more stringent regularions on rent increases and evictions.
Long_term I feel this has reduced *some* of the allure for me and in coming months I hope to research and find defense mechanisms.
So far I only own 2 investment homes - and my rule has been that if a tenant has a complaint, fix it FAST, and not on the cheap. For instance a Mom reported her washing machine not working. My property manager said it will be a week to get it fixed and I said "no, get a new machine delivered NOW". But on the flipside, NO problems with tenants.
However, once people have the protection of law, attitudes will indeed change.
I truly want to own 5-7 rental homes. Soon. But I believe that within 10 years, people will be allowed to not pay rent, and have much more protection than they have now.