Why do you become a Landlord?

The human population growth is not matched by the housing construction, so it makes the demand higher than the supply. It will increase the housing prices significantly. Some people with limited funds to buy a house will choose to rent a house for the first time. This creates opportunities for investors to gain profit from capital gain and income from renting out the house. This study intends to find out the factors taken into considerations for becoming a landlord. The data are collected by distributing questionnaires to owners who are renting out their houses (landlord) in Surabaya. The questionnaire obtained are from 113 respondents, then are processed using the factor analysis. The result of the factor analysis finds out that there are four financial factors to be considered by landlords, such as the inflow and outflow factors, investment factors, leasing fee and regulation factors, and interest in entrepreneurship factors. These three factors explain the beneficial for being a landlord, and one factor explains the loss. Therefore, becoming a landlord is more attractive.