14 Sep The Rise in Laptop Landlords
Today, investors are buying far more homes than before the pandemic. Many of those investors are what have come to be known as “laptop landlords.”
A recent headline from the Greater Baton Rouge Business Report reads, “Laptop landlord purchases 23 properties in south Baton Rouge for $6.7M.” The article details how the company purchasing the properties “is one of an emerging number of online real estate investment platforms that are purchasing rental properties throughout the country.”
What Is a Laptop Landlord? Anyone who buys rents out, and generates passive income—all from a laptop. These nontraditional landlords might even live on the other side of the country from their investments but are able to manage their properties from the comfort of their own homes with a few clicks.
How to Become a Laptop Landlord: Online firms like Arrived and Roofstock operate by crowdsourcing funding for the purchase of rental properties that return dividends to their investors. Companies like this are helping small-time investors snap up out-of-state properties, according to this article from the Wall Street Journal.
Why Purchase Real Estate Not in Your Area? The best deals nationally are often not in your own market. Finding markets, outside your own, may yield the richest results. The WSJ article gives the example of a San Francisco-area man who wanted to invest in the housing market but couldn’t afford his local market. With the help of an online company, he was able to purchase a three-bedroom house in Mississippi.
Word of Caution for Laptop Landlords: Although the internet provides a prospective investor with pictures and financial details of each listing, take all that with a “grain of sand.” Pictures can lie, and numbers can be misleading. For a more complete evaluation of a property, get some “boots on the ground.” Never go in blind. Have an experienced agent, whose knowledge and opinion you trust, visit the property.
The Importance of Monthly Inspection – Since most of these keyboard investors are not local to their property location, it is very important for them to work with a local property management group to ensure that the property is being inspected monthly. Asset Protection Insurance Associates requires all insureds to complete monthly property inspection reports. These reports describe the condition of the property and provide a helpful checklist to make sure the property is secured to help decrease risk. For example, noting loose railings, window damage and interior water damage.
How to Evaluate a New Real Estate Market: To confirm a property’s worthiness for investment, do your research. Be sure you understand the community you are investing in. Consider the following:
- What is the expectation of job growth in the area?
- Is there economic diversity present?
- What is the quality of the infrastructure—the roads and highways?
- What about the area’s crime rate?
- What are the sales prices in the area?
- How does the neighborhood appear, as one drives through?
- Are there signs of an oversupply of homes in the area?
How APIA is Helping Laptop Landlords with Five or More Properties: Landlords who own five or more single-family homes know that the first step is to provide insurance coverage to protect their investments. Asset Protection Insurance Associates (APIA) can make that process easy by placing all properties under ONE POLICY. Call us at 877-752-2742 or visit www.APIAprotects.com to get a quick quote.