Coming Soon
Subscription Marketplace - Buy and sell subscription products and services
0 like 0 dislike
603 views
in Articles by
Rental property can be an excellent way to bring in additional money as well as invest in an asset that is actually tangible; however, investing in rental property does involve more than just purchasing a property and watching the money roll in. Many people believe that the biggest hurdle they may face is obtaining the loan; however, this may be easier than they actually think. It is other issues which you may face along the way which should be considered before you actually take the step of purchasing rental property.

First, always make sure you take the time to know exactly what you can afford. Many people make the mistake of overlooking this step, assuming that the rent will cover the mortgage payments. If you are not sure of exactly what kind of rent you can get before you purchase a property, you could find yourself in financial trouble later on. You should always research rental properties in your local area to understand the going rates for similar properties. Check the newspaper for information on going rental rates. It is also a good idea to check with your local landlord’s association for rental rate information.

In addition, you need to take into consideration expenses which may come up along the way. Ideally, you should have a reserve fund established to tide you over in the event you experience emergency expenses or your property is vacant for a period of time. Before you commit to purchasing a property, make sure that you will be able to rent the property for at least an amount that will cover the mortgage as well as still have a sufficient amount left over to cover insurance premiums, maintenance costs, property taxes and income taxes.

In addition, you need to give some thought and consideration to the type of property that will best suit you. You can find rental properties in many different sizes as well as types. Each of these different types can pull in different rental rates as well as attract different types of renters. So, giving thought to the property that best suits you is really an important step which should not be overlooked.

For example, if you purchase a property that is near a college or university you are likely going to find that most, if not all, of your tenants are college students. While you may never have a vacancy, you may also find that you have a continual turnover, problems collecting rent and even possible damage to the property itself.

In addition, you should make sure you understand your responsibilities as a landlord. Keep in mind that your obligations are typically regulated by the state in which the property is located. Some states have very little regulation while other states are highly regulated. If you fail to follow state regulations you could find yourself in for quite a bit of financial as well as legal trouble. It is always best to educate yourself ahead of time.

Finally, make sure you consider how much insurance you will need to not only property the property in the event of damage or destruction but also to cover all liabilities as well. One liability claim can be enough to cause serious repercussions so this is not an issue where you want to take a short-cut. Remember that it is your responsibility as the landlord to provide liability insurance, not your tenant. If someone should slip and fall on your rental property then it will be you who is responsible, not the renter.

Rental investment property truly can be an excellent investment and income builder provided that you are prepared and understand what you should expect from the outset. Do not be afraid to seek help where you need it, especially from associations and from professionals such as attorneys. This is the hallmark that can often set a successful rental property investor apart from one who fails.

Please log in or register to reply to this topic.

Related topics

0 like 0 dislike
0 replies 687 views
0 like 0 dislike
0 replies 602 views
posted in Articles by Falconjurer
0 like 0 dislike
0 replies 569 views
0 like 0 dislike
0 replies 484 views
posted in Articles by Mosquiche
0 like 0 dislike
0 replies 826 views
posted in Articles by SnailMail
0 like 0 dislike
0 replies 661 views
posted in Articles by Octopixy
0 like 0 dislike
0 replies 648 views
posted in Articles by Wallaby
0 like 0 dislike
0 replies 521 views
posted in Articles by Celestiger
0 like 0 dislike
0 replies 876 views
0 like 0 dislike
0 replies 468 views
posted in Articles by FatKomodoDragon
0 like 0 dislike
0 replies 566 views
posted in Articles by BeautifulWolf
0 like 0 dislike
0 replies 519 views
posted in Articles by Emufasa
0 like 0 dislike
0 replies 763 views
posted in Articles by GroundHurricane
0 like 0 dislike
0 replies 480 views
posted in Articles by SwiftHeroine
0 like 0 dislike
0 replies 628 views
0 like 0 dislike
0 replies 630 views
posted in Articles by Dragonig
0 like 0 dislike
0 replies 477 views
posted in Articles by LoyalChief
0 like 0 dislike
0 replies 517 views
posted in Articles by TrustyKitty
0 like 0 dislike
0 replies 443 views
posted in Articles by GamerAlpaca
0 like 0 dislike
0 replies 602 views
posted in Articles by HairyMagpie
0 like 0 dislike
0 replies 562 views
posted in Articles by GreedySmile
0 like 0 dislike
0 replies 489 views
posted in Articles by GreedyPig
0 like 0 dislike
0 replies 425 views
posted in Articles by Butcherry
0 like 0 dislike
0 replies 650 views
posted in Articles by Monkeyno
0 like 0 dislike
0 replies 604 views
posted in Articles by GrizzlyFlash
0 like 0 dislike
0 replies 510 views
posted in Articles by OpinionOwl
0 like 0 dislike
0 replies 480 views
posted in Articles by SleepyFledgling
0 like 0 dislike
0 replies 497 views
posted in Articles by Tabooccaneer
0 like 0 dislike
0 replies 597 views
posted in Articles by Prepatriarch
0 like 0 dislike
0 replies 679 views

55,458 topics

594 replies

3 comments

1,623,835 users

Connect with us:
...