Rental property investment is a popular option since it yields more profit than other investment methods. If you are investing in rental property for the first time then read on this article to know the pros and cons of investing in rental property
Unlike other investment options like stocks, gold and mutual funds, real estate won’t yield profit easily but it is a popular option among young real estate entrepreneurs. Why is it so? Rental properties give you cash flow income, you can buy a house, apartment, multifamily homes, buildings, and skyscrapers etc. and rent it to earn monthly income.
But stocks, gold and mutual fund investments don’t need your time or hard work, whereas real estate investments do. From searching a reliable property to renting the good tenants, everything can become a great struggle if not planned properly.
Dc Fawcett tips – How to find a good rental property?
You can either hire a trustable real estate agent to find a rental property or find it by yourself. It is always good to find the property by yourself since you know what you need better than real estate agents. You can buy a property which best suits your budget and personal interest. Rental property is not only meant to rent, you may also have to accommodate it for your personal use.
There are some vital factors which have to be taken care of while investing in rental property. To mention a few,
If you are buying the old property then make sure that it is structurally built well. Buying a very old property and starting a work from scratch might not be a wise decision. You may fail to calculate the expenses properly which may exceed the acquisition and renovation cost. Hence it is very important to find a property which needs very less alteration or renovation works.
Neighborhood and locality of the rental property you purchase is an essential factor which determines the cash flow income of the property. Good locality with all facilities attracts potential tenants and you may not have to face vacancies often. Such property’s appreciation value also rises continuously which earns you more profit. But you need to maintain the rental properties regularly either by hiring a contractor or individual workers like painter, plumber, electrician etc.
If possible find location with lot of employment opportunities which act as an added advantage while searching for potential tenants. A major company might be moving in the location where your rental property is located. This may attract many new tenants and you may also increase the rent according to the competition.
Possible things which affects your rental property investments – Dc Fawcett Reviews
If you have been renting the property for long years, then it might have got damaged terribly and you need to do a major renovation or repair before either accommodating others or for self possession. Renter can damage your property in an unimaginable way and you need to be very careful while choosing your tenants.
Your rental property might need regular maintenance and repairs. These repairs might be expensive and may surprise you often.
Have some strict rules on your tenants on rent payment. Some of them might often delay the rent payment which may also affect your loan repayment. So its better to have strict rules of rent payment like asking them to pay their rents within the first week of the month.
Owning a rental property is a great responsibility and needs a lot of hard work. But it is good investment option undoubtedly.