Buying Rental Property FAQs

There are some great advantages to buying a rental property. Owning a rental property may provide you with a steady and consistent income. Making upgrades like landscaping, painting, refinishing, etc., will also add worth to the property and increase its value, especially if you want to sell it in the future. Eventually, the property may automatically increase in value due to area demands even if you don’t make any improvements.

Obviously, the goal of owning a rental property is to receive supplemental income. However, you may encounter some problems that may force you to dip into that financial cushion you were banking on in the first place. If you don’t have a lot of money, owning a rental property can place a strain on your budget. If the unexpected happens that isn’t covered by insurance, you could potentially lose a lot of money. Other concerns to owning a rental property may include both tenant and building issues, such as:

  • Late rent payments

  • Eviction for non-payment

  • Property damage that exceeds the security deposit

  • No tenants = no income

  • Property taxes, fees, and insurance cut into profits

  • On-going repairs and upgrades

  • Paperwork

  • Tenant/landlord interaction

  • One Solution

Hire an outside management company that could manage your property handling the day-to-day tasks on your behalf. A percentage of the rent would pay for this service. Property management services include, but are not limited to:

  • Rent collections and evictions

  • Building maintenance and improvements

  • On-call emergencies

  • On-going paperwork

  • Tenant/landlord interaction

Recent Posts