“March comes in like a lion and out like a lamb.”
Adages stick through time because they are true.
Lions are fearsome and found in jungles and caged in a zoo.
Lambs are gentle grazing in fields and on grasses they chew.
So, what are we afraid of – and what are we looking forward to? (Pardon my dumb poem for the year – whew!)
Abundant Covid vaccinations could show up. Counties might re-open and schools and restaurants and sports and public events resume. Students have graduation ceremonies. Couples get married. Grandparents spend time with family. Tenants all go back to work to and/or prosper in their endeavors. Rents are all paid on time. The eviction moratoriums end.
Landlord’s are reimbursed through the state Landlord Compensation Fund.
Yes – the economy shall flourish, and hotels get packed. Airplanes get booked and miles get tracked. Resorts grow crowded. Blockbusters movies are shown! Storms turn away. Our portfolios have grown.
Okay, maybe that does not all happen to all of us all at once (or by the end of this month, anyway). But give it time and we will all look back and remember what it was like when we used to have to wear a mask or worry about rent payments being made and eat at home every night.
So here is an unrelated (but timely) question: Given all this uncertainty: Is it still a good time to be a landlord?
There are four ways to financially prosper over time when owning rental property.
1.Rental income. Positive cash flow is one source of revenue.
2.Debt reduction. Mortgages that get paid off create larger equity reserves.
3.Property appreciation. Valuations rise over time and create wealth.
4.Depreciation schedules. Deductions from taxes defer losses and help retain income.
It has never been common for most (especially smaller) landlords to realize all four sources of income growth at once. But over a little time, it all works out.
One day (in 2022?) we will look back and remember when we got cold feet and had the jitters before the great thaw occurred and springtime once more reappeared. It will be a time to sing “The Great Apartment Song”. (You don’t know the lyrics? Oh, I’ll teach them to you next month).