Local landlords – why we need them

Renting is a crucial part of the homebuying process. Future homeowners need an affordable housing option while they find their future home or save money for a down payment. Rental properties fill these needs. Because rental properties are essential, it’s important to develop and preserve a healthy market share of affordable rental units. One way that we can drive fair, decent renting is by encouraging local residents to invest in rental properties and become landlords. Below, we outline a few of the benefits of sustaining rental property management within the local economy.

Preserve community integrity

Historical homes and buildings make a city more interesting to visit and live in. They tell a story of the city, and more importantly, the neighborhood they’re located in. Preserving the culture and history of cities and neighborhoods is important to maintaining value and avoiding becoming a non-place. 

Non-places refers to areas where authenticity is replaced with anonymity. When foreign investors develop in a city, they tend to purchase large swaths of property. In these purchases, they are more inclined to tear down historic or culturally significant properties to build generic residential areas. This not only interrupts the historical aesthetic of a city, but removes the valuable and unique culture built over time. However, for local investors purchasing individual properties, the cost of renovating a singular existing building is more feasible. Their deeper understanding and appreciation for a neighborhood's original architecture often means that these renovations will align with community standards and renter preferences.

Improve tenant experience

The key part of having a local landlord is just that, locality. Rather than investing in a development then moving on to the next city, locally based landlords remain in the area which makes them more available to address problems. With local landlords, tenets are able to contact them directly, rather than going through multiple channels or large management companies. Direct contact, proximity to the property and contacts with local trade professionals help ensure serious issues are resolved quickly and rental properties stay in good condition. On top of this, local property owners tend to manage fewer properties which means they give more attention to issues when they arise, making it an all-around better experience for the tenant.

Remain invested.

When you shop locally, you’re keeping money within the community – living at a locally owned property is no different. Rent paid to a local landlord stays within the city’s economy through taxes, purchases or additional investments. This is beneficial to the community's economy in several ways.

First, locally based landlords pay taxes on their personal property and income, in addition to their rentals, which circulates directly back into improving the community. Additionally, local landlords make purchases within the community, which support businesses within the city. Finally, locally based landlords reinvest in more properties, which helps discourage out-of-state, large investors and sustain an independent local economy.