We hear the naysayers all the time. Not a great return, too much hassle, I don’t know what to do, etc... The fact is, that rental property is a stable and great investment. Let’s break it down for you…
Owning rental property can be a great source of steady income if handled properly, or it can be serious profit when looking for a long-term real estate investment. Going about both is a bit different though – so you have to be honest with yourself about your short-term and long-term goals. Deciding which way you want to go depends on several things.
Rental property is much like your own personal property…Well, you own it just like you own the home you live in! The owners/renters - you - have all of the standard legal obligations of owning property, including taxes, the mortgage, insurance and any other expenses. You also need to be aware of the condition of the property at all times and maintain a safe living environment for your tenants. There is also the investment of time in managing the property. Who is going to do repairs, mow the lawns, shovel the sidewalks, follow up with tenants if rent isn't paid, see that all rules are being followed, settle disputes...the list is a long one. Even if you can’t do it – a good property management agency can do it for you.
If you decide you want to keep your rental property as a long term investment – and not a short term windfall – take some extra thought. Be sure you protect yourself financially and legally. Owning rental real estate means knowing how to handle tenant effectively, fairly and legally all the while making sure you are covered.
Investing in commercial property can be a lucrative venture. However, you can capitalize on your return by boosting your commercial property's value by adding some investment friendly features. These improvements can run the gamut from a substantial initial payment to a mere investment of your time and sales skills. You can take a piece of undeveloped land and increase its value exponentially by using a few techniques to give it more selling power and you a higher profit.
If you find inexpensive and high-end property, consider this: Property that is on or near golf courses, lakes or beachfront is usually always a safe bet. Plenty of people have made a mint from rental shore homes. Sea or lakeside property is a rare commodity and should be jumped at quick! Ocean front condos in Myrtle Beach for example are great for increasing your profits from commercial property!
Kuester Property Management