If you're eyeing a property as a real estate investment, you probably know that turning a home into a rental property can be a great way to go. But before you commit to a big purchase, it's a good idea to know what both the pros and cons of the investment are. Here are some of the best and worst things about investing in rental properties.
Potentially Greater Income
One of the biggest reasons to buy a rental property is that there is potentially much greater income to get out of a rental property. You will be able to get a monthly income out of the property for as many years as you'd like before selling the property. Compared to simply buying and selling, turning your property into a rental property first can help you get a lot more utility out of each investment.
Potentially Greater Risk
At the same time, there is more risk involved with having a rental property. For instance, you may have to deal with a high rate of turnover. You'll still be paying for property taxes and other expenses on the property, whether or not it's occupied.
More Management Involved
In general, there's a lot of management that can go into a rental property, and it's often more than you would expect. There's the process of finding tenants, screening them, dealing with leases, collecting rent and pursuing tenants who haven't paid, and dealing with regular maintenance and other complaints. Before you consider buying a property, you might want to look into what a property management team would cost for the property. They can take the hassle out of all of the extra work that goes into being a landlord and ensure the rental property is run professionally.
More Stable Monthly Income
Another potential benefit of rental properties is that it can provide you with a monthly income. If you buy and sell a home, it's a one-time fee. But some landlords choose to make rental properties their biggest source of monthly income. The job and lifestyle of being a landlord is appealing to many people.
If you've been inspired by the opportunity to own rental property as real estate, the best thing you can do is speak with a real estate agent who specializes in rentals or visit websites like http://www.dianestow.com to get in contact with a professional. They can help you choose the properties in your area that will be most attractive to your prospective tenants.