To a lot of people, it most certainly does. Why, though? There are several reasons but perhaps the most prominent one is being able to collect monthly rent from the tenant on the other half of the unit to help offset or pay for the entire mortgage on the duplex. Does this always work?

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First, it’s a lifestyle choice. While essentially Living ‘mortgage payment free’ due to the rental income, you’re now living right next door, with an attaching wall, so there’s that to deal with. Like living in an apartment building, there can sometimes be some noise issues. Maybe the front door slams a lot. Maybe the walls are so thin that you can actually, albeit faintly, hear a conversation. Or music.  Of course, this means some due diligence on your part when evaluating a prospective tenant application. 

By contacting the Previous Landlord, if there was one of course, you may be able to get an idea as to the type of tenants that might be your new neighbors. Of course, there’s always the possibility the previous landlord will give a glowing report for the sole reason of getting rid of them. I don’t think this is common but you can bet it happens.

A Credit Report will also give you a good idea as to the overall financial responsibility of the applicants. Good credit indicates this responsibility which you could infer they’ll also be responsible with taking care of the property. With a solid referral from the previous landlord and a relatively clean credit report, you’ve probably got a good prospect.

You’ll also want to take a peek at their employment. This means looking at recent copies of their paycheck stubs showing they have sufficient funds every month to pay your rent on time. One other thing, being a landlord means taking care of tenant issues when things go a bit sideways with the property. Is the hot water heater out? Time to replace it. Plumbing or electrical? Time to call a contractor or two.

With these considerations being properly addressed, you could very well be on your way to living ‘mortgage free’ when buying a duplex, renting out the other side while living in your own unit. It can make sense for you if in fact you’re up to the maintenance side. If you’re not up to the maintenance portion but do like the prospect of monthly rental income, you can always look into hiring a property manager to take care of all the day-to-day tasks.