If you believe that being a landlord and owning real estate can adequately fund your retirement account, then you are right. A lucrative investment opportunity, rental properties have grown in popularity due to their money-making potential.
If you want to invest in a property, you’ll need to allocate funds towards that property in order for it to generate some cash flow. Consider fees such as mortgage, taxes, and repair costs. It helps to set up an emergency fund to prepare for the unexpected.
In order for you to generate revenue you’re going to need tenants. Start by advertising your property for people willing to look into it. Then after selecting your candidates, perform a thorough screening and background check to verify if they are the type of client that you want in your building. It’s important to make sure that you find the right tenants that won’t: cause any damage to your building, pay their rent on time, and uphold good standing in the community.
If you don’t want to be a landlord 24/7 you can always consider hiring a property manager to take care of all of the tenants. The primary duty of a property manager is to market your rental property, set budgets, collect the tenants rent, etc. If you do hire someone, be sure you screen them as well. Your money is on the line and you want somebody trustworthy to handle it honestly.
Rental properties can be a worthy investment if you plan it out carefully. It takes plenty of work and effort but it can be a great source of passive income. It takes money to make money in the real estate market. It’s better to be prepared than to come in and suffer a loss in capital.
Bio: Kuba Jewgieniew, the CEO of Realty ONE Group, is a former real estate agent that wanted to transcend the real estate market by forming his own real estate brokerage. After its inception it has collected accolades and awards for efficiency and success.