Due to low mortgage rates that spurred increased investment of second homes in 2020 and 2021, Zillow economists predicted that 2023 would bring a wave of first-time landlords. To learn about the new class of landlords and their concerns, Zillow surveyed first-time and repeat landlords mostly having two rental properties.
Nearly all landlords (92%) said repairs or maintenance were one of the top three most demanding responsibilities of managing a rental property, and 40% considered it the most burdensome. In second for most burdensome tasks was screening tenants—including reading applications and completing background and credit checks—at 71%.
“Investing in a rental property can provide reliable income and housing for a renter who needs it, but it’s crucial for landlords to understand the responsibilities,” says Manny Garcia, a population scientist at Zillow. “Many landlords wish they had known more about the effort required to find tenants and keep the property in good condition.”
Over one-third of landlords said they wished they would have known how difficult it is to find reliable renters and how time-consuming managing a rental is, while 37% said they did not expect the amount of effort it takes to lease a property—processing applications, scheduling tours, and writing a lease.
