With retirement comes a lot of free time. Many individuals may be looking for a part time or low effort job to keep them active still. Explore the costs, benefits, and responsibilities of managing ADUs (Accessory Dwelling Units) for short-term stays or apartments for long-term tenants & determine the role that suits you.
Retirement offers the perfect opportunity to explore new ventures. For many retirees, property management can be a fulfilling way to generate income while staying active. Whether you prefer to run an accessible dwelling unit or an apartment complex, each option has distinct advantages and disadvantages. Finding a property management role that fits your retirement depends on your goals and desired level of commitment. Understanding these key differences is crucial before deciding what’s best for you.
Running an Accessible Dwelling Unit (ADU) for Short-Term Visitors
If you have an extra room, a guest house, or have even built an ADU on your property for more cash flow in retirement, hosting short-term visitors could be an appealing option.
Costs to Consider
Starting an ADU rental involves initial expenses, such as furniture, utilities, and installing essential amenities.
You’ll also face recurring costs such as maintenance, insurance, and cleaning between guests.
The Benefits
Short-term rentals provide flexible scheduling. You can keep travelers from booking specific dates whenever you want personal space. Additionally, hosting travelers from all walks of life can be an enriching social and cultural experience.
Responsibilities
On top of providing a clean, comfortable, and welcoming experience, regular maintenance and compliance with local laws are non-negotiable for staying in business. As a short-term host, you’ll manage bookings, provide timely communication, and resolve any guest issues.
Managing an Apartment Complex for Long-Term Tenants
Perhaps you own, inherited, or are considering purchasing a small apartment complex. Renting to long-term tenants offers a traditional approach that can provide a stable, predictable monthly income.
Costs to Consider
Although there’s less turnover than short-term rentals, the initial costs of upgrading and maintaining multiple units can be substantial. You’ll have ongoing expenses such as property taxes, regular maintenance, and repairs.
Additionally, you’ll need to invest in background checks, lease agreements, and legal advice to protect yourself as a landlord. If managing multiple units seems overwhelming, you could hire a property management company, though this additional service will reduce your profit margin.
The Benefits
Long-term tenants provide reliable monthly income and allow for more meaningful relationships with tenants. Plus, there’s less wear and tear from frequent moves, and you’ll spend less time and money on frequent advertising for new tenants.
Responsibilities
Being a landlord requires a commitment to maintaining shared spaces, enforcing lease agreements, and fixing broken appliances. You also have to ensure that fire escapes, fire alarms, and other safety features tenants want in apartment buildings are up to code. Addressing tenants’ concerns requires time and patience, but these efforts build a loyal, cohesive community that benefits everyone.
Deciding What Works for You
When finding a property management role that fits your retirement, remember that while both options can be rewarding, they suit different lifestyles and goals. Before deciding, consider your financial situation, time commitment, and ability to manage the property's demands so you’re sure to strike the perfect balance between work and leisure.
Post and Photo credit: Logical Positions
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