TikTok has become a popular platform for content creators from various backgrounds, including real estate. Additionally, it’s become a place for new or up-and-coming landlords to gain popularity and talk about their experiences. However, these “TikTok landlords” are starting to get some hate from individuals who don’t understand or align with their business strategies. But, what exactly are they doing wrong? Check out the video below where we go over what it means to be a TikTok landlord and the impacts on tenants and the housing market.
Contents of This Article:
- What Does It Mean to Be a TikTok Landlord?
- Impact of New Investors on the Housing Market
- Is This Strategy Better or Worse for Tenants?
- Ensure Proper Management With BMG
What Does It Mean to Be a TikTok Landlord?
A “TikTok landlord” refers to someone who gains popularity or attention on TikTok by sharing content related to their experiences–specifically how they make money from real estate. Some TikTok landlords have accumulated large followings by sharing insights into the rental market, showcasing their properties, or offering advice on managing rental properties.
However, not everyone agrees with the advice being put out there. Recently, there’s been a surge of young investors looking to “get rich quick” by buying cheap properties and renting them out above market value. These TikTok landlord videos contain young investors professing how to buy and rent out properties to tenants–and get rich in the process. But often, fail to mention the obligations and responsibilities that good landlords and Northern Virginia property managers have.
The main problem is that many TikTok landlords imply that owning rental properties is “not that difficult.” However, this becomes problematic because being a landlord takes a ton of work and responsibility. When TikTok landlords frame their responsibilities as “easy” or “passive,” it can give some people false hope.
Additionally, many TikTok landlords encourage buying vacation homes or Airbnb properties. While this is an excellent strategy for some investors, it may create issues within the housing market. For instance, with more vacation rentals and fewer rental homes on the market, some people have difficulty finding long-term housing.
Despite the rise of the TikTok landlord, it’s important to recognize that many landlords strive to provide safe and well-maintained housing, treat their tenants fairly, and follow legal and ethical practices.
Impact of New Investors on the Housing Market
The new generation of investors, or “TikTok landlords,” can impact the housing market in various ways. That said, the effects may vary depending on their investment type and strategy. Here are some general points to consider while learning more about TikTok landlords.
- Increased Demand and Competition- When new investors enter the housing market, they contribute to increased demand for properties. This can lead to higher buyer competition, potentially driving up prices, especially in areas with limited housing supply.
- Price Appreciation- As new investors purchase properties, particularly in popular or rapidly developing areas, they may contribute to price appreciation. Now, this may be beneficial for existing homeowners looking to sell. However, it can make it more challenging for first-time homebuyers or those with limited resources to enter the market.
- Rental Market Impact- When investors purchase properties for rental purposes, it can lead to increased competition for rental properties, potentially driving up rents. Unfortunately, this can make it more challenging for tenants, particularly in areas with high demand and limited affordable housing options.
- Lack of Long-Term Housing- Some TikTok landlords encourage individuals to invest in vacation homes or Airbnb properties instead of long-term rentals. While this can lead to financial gain, it decreases the availability of long-term housing, which can negatively impact people looking for homes.
- Market Stability- While new investors can bring positive impacts, an excessive influx of investors or activity can contribute to market volatility. For instance, rapid price increases followed by a sudden decrease in demand can affect the overall stability of the housing market.
Is This Strategy Better or Worse for Tenants?
The impact of new investors on tenants can be both positive and negative, depending on various factors. Here are some considerations while thinking about it from a tenant’s perspective.
Positive Impacts
- Increased Rental Options- New rental market investors can contribute to increased available rental properties. More supply can provide tenants with more options to choose from, potentially leading to greater affordability and improved quality of rental units.
- Property Upgrades and Maintenance- Investors who purchase properties intending to rent them out may invest in renovations, repairs, and maintenance to attract tenants and maintain the property’s value. In turn, this can result in improved living conditions for tenants, like upgraded amenities and well-maintained properties.
- Professional Property Management- Some investors hire professional property management companies to handle the day-to-day operations of rental properties. These companies, like Bay Property Management Group, can provide efficient maintenance, responsive communication, and streamlined processes, offering tenants a better renting experience.
Negative Impacts
- Increased Rental Rates- If new investors drive up demand for rental properties, it can lead to increased competition among tenants, potentially resulting in higher rental prices. In areas with limited affordable housing options, this can make it more challenging for tenants, especially those with lower incomes, to find affordable housing.
- Less Home Security- Investors who prioritize short-term gains or engage in get-rich-quick investment strategies may have a higher turnover of properties. This can lead to less stable tenancies, as tenants may face the risk of being displaced if the investor decides to sell the property or change their strategy.
- Makes Homeownership More Difficult- Not only do get-rich-quick investors affect tenants, but they also affect individuals that want to move out of a rental and buy their own home one day. With investors buying all the available homes and turning them into Airbnbs or rental properties, it leaves few viable options for first-time homeowners to buy properties.
- Lack of Tenant Right Focus- Some TikTok landlords may prioritize maximizing profits over tenant rights and well-being. For instance, they may be less inclined to offer tenant-friendly policies, like long-term leases. Additionally, they may be slow or unavailable to address maintenance issues promptly.
Ensure Proper Management With BMG
Whether you’ve been investing for years or you’re entering your “TikTok landlord” era, it’s crucial to focus on excellent management. After all, the last thing you want is to fit into the stereotypical “bad landlord” category.
One of the best ways to ensure happy tenants and well-maintained properties is with a comprehensive rental management company. If your main priorities are your tenants and the well-being of your rentals, look no further than Bay Property Management Group.
Need More Advice? contact us today!
BMG offers a wide range of rental management services, from marketing to tenant screening, maintenance, rent collection, and more. So, if you’re looking for rental management in or around Baltimore, Philadelphia, Northern Virginia, and Washington, DC, contact BMG today.