To be or not to be a land­lord

Business Day - Home Front - - HOME FRONT -

DE­CI­SIONS If you’re a home­owner whose job sud­denly de­mands that you trans­fer to an­other town — or coun­try — for a while, you could have a tough time de­cid­ing what to do with your prop­erty.

“Those who have al­ready ac­quired a prop­erty of­ten de­cide not to sell their ‘home base’, but to let it out while they’re away and rent a tem­po­rary home them­selves in the new lo­ca­tion,” says Berry Everitt, MD of the Chas Everitt In­ter­na­tional prop­erty group.

How­ever, the de­ci­sion to be­come a land­lord is not one to be taken lightly. It can carry con­sid­er­able risks, and it en­tails ad­di­tional re­spon­si­bil­i­ties and obli­ga­tions. Everitt says the costs of main­tain­ing a rental prop­erty can erode the rental re­ceived.

“And if there is a sud­den down­turn in the mar­ket, or a ten­ant ab­sconds, the fi­nan­cial con­se­quences can be se­ri­ous for the owner who is also pay­ing rent or an­other home loan in­stal­ment else­where.”

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