Whilst real estate investing is a great line of business to get into in order to make copious piles of cash there are some things to consider prior to jumping into the fray. This really is primarily true if you are considering becoming a rental property owner. There are all kinds of good reasons that this is a good stable investment for many that are considering investing in property business however, it doesn't come without some drawbacks, not all of which are financial. It might be wise to consider these things however before you acquire your first rental property.
To begin with, if you happen to have rental properties and elect to manage them on your own, which is probably wise except when your first property is a multiple rental unit, you will almost instantly discover that your life is no longer your own. You're practically on call 24 hours a day 7 days each week to deal with problems that could come up from pipes bursting, heating going out, electric problems, noxious fumes, leaking roofs and window sills and a multitude of other complaints which will erupt at odd hours of the day or night. Your tenants will certainly have your phone number and expect you to at all times take their calls.
Second, you have to play the role of Mr. or Mrs. Mean each month when the rent is due. This is probably the the most distasteful task of owning rental properties for many rental property owners and one explanation that many resort to the services of a property management agency above all various other reasons. You'll hear all sorts of sad stories in your occupation as landlord however you have to treat this just like the business, even the issues about your business you dislike such as rent collecting and, when necessary, eviction proceedings.
Third, the continuous demand for maintenance and repair is usually daunting to rental property owners. It's a sad reality that most people don't handle rental properties with the attention that they would handle a house of their own. For this reason you almost always need to paint and replace carpeting, at the at the bare minimum in between tenants. This takes work and time not forgetting the fact that the time that is spent painting and changing the flooring is a period when the property is likely to be vacant of tenants and not bringing in any revenue.
Lastly, there's the continuous necessity to have the property occupied. As the owner of a rental property you'll need to acquire new tenants when the former ones vacate because every day the property is vacant is a day you are not making money. You want to have the property lived in as frequently as you can and also you really want long term tenants whenever you can swing that. One method needless to say is by ensuring that your tenants are treated properly, not overcharged, and satisfied with their homes.
Owning rental property will be financially rewarding however it is a lot more work than a lot of people think in view of many other careers inside property investment business that may require considerably more work in advance. Rental properties demand a long-term dedication to retaining the property in good working order and making it a profitable project for a long time to come. If you are contemplating this business and the above points are a deterrent for you it may be a good idea to acquire the expertise of a property manager.
Milan Doshi holds regular talks on the topic of investing in property. If you want to know what to invest in property, then come to his Property Intensive seminar organized by Wealth Mastery Academy that has helped opened the minds of many to the opportunities available in property investment.
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