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Ten statements. Two minutes. Find out where you land.
Owner Education Quiz 1 of 4
There's a difference between a landlord and an investor, and it changes almost every decision you make about your rental. Ten statements, about two minutes. For each one, pick how much you agree. There are no right answers, so go with your gut, not the answer you think sounds best. Then you'll see where you land on a 1 to 10 scale and what it means.
Your score: out of 10
A landlord usually thinks of the property as a home they're renting out, and the goal is covering the mortgage each month. An investor thinks of it as a financial asset, and judges it by return, risk, reserves, taxes, appreciation and long-term wealth. Neither one is a bad person. But they make very different decisions, and most owners are somewhere in between.
| Topic | Landlord mindset | Investor mindset | You |
|---|---|---|---|
| How they got into rentals | Often by accident: moved out of a home and kept it, or inherited one. | On purpose, as an investment. | |
| Emotional connection | Usually lived there and may be attached to it. | Often none. May never have stepped inside. | |
| Number of rentals | Often three or fewer. | Several, or working to add more. | |
| Main question | Can this cover the mortgage? | Is this the best use of my money? | |
| Time horizon | Month to month, year to year. | 20 to 30 years. | |
| How a rental makes money | Rent minus expenses. | Cash flow, tax savings, appreciation and loan paydown. | |
| Reserves | May not have money set aside for big repairs. | Budgets for roofs, furnaces, water heaters and other big items. | |
| Repair calls | Wants a call about every expense. | Only wants a call when it's big or has tax effects. | |
| Biggest risk | A bad tenant. | Liability, especially a fair housing complaint. | |
| Working with a manager | Wants a say in most decisions. | Lets the manager run it and steps in when it truly matters. |
“Can I rent this property and cover the mortgage?”
“Is this property the best use of my money over the next 20 to 30 years?”
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This is general education, not tax, legal or investment advice. Eclipse Property Management is a property management company, not a tax advisor, attorney or financial planner. Talk to a tax professional about your own situation.
