Experts agree that rental property investment can be a great source of passive income, or it can be a headache. Rental property investing has produced the wealthiest people, but the journey isn’t always easy. There are a lot of things to consider before even buying a property like the cost and expenses of owning one, and whether the property will generate a decent income month after month. But just like any type investment, there are benefits and drawbacks to owning one that you need to know about before diving in.
Benefits of Owning a Rental Property
Here are a few perks to becoming a landlord…
- Passive income source
- Property value appreciation
- Tax savings and deductions
- Mortgage reduction
Drawbacks of Owning a Rental Property
The following disadvantages seem relatively small, but they can add up to a significant cost when ignored…
- Lack of liquidity
- Concentration of assets
- Difficult tenant risk
- Neighborhood Decline
- Vacancy
- Upkeep
Should You Buy a Rental Property?
If you’re thinking of purchasing a rental property, below are a few things to consider before diving into the rental property investment world.
1. Have I done my homework?
Rental property investing is not just about buying a cheap property and have it rented out. There’s so much information involve about real estate investing and it takes a lot of work to manage a rental property. You need to understand not just the benefits, but also the risks involves before buying a rental property.
2. Am I ready to be a landlord?
Do you know where to list your rental property? Do you have any idea on how to screen potential tenants? Are you ready to receive calls ay time of the day for some repairs and complaints? If you’re not the handy type and unfamiliar with tenant screening laws in Texas, being a landlord may not be right decision for you. Unless you have a property manager, then you don’t have to worry about tenant screening or maintenance.
3. What should I look for in a rental property?
There are can be hundreds or thousands of rental properties near you. If you’re thinking of buying your first rental home, look for features that can boost your chances of making your rental stand out from the rest in your neighborhood.
If you’re thinking of investing in rental property, it’s important to know which features will boost your chances of finding an excellent tenant and help make your rental stand out from the rest. There are several features that can boost your chances of finding a good tenant like location, transportation, utilities, and off-street parking. If you’re buying a Houston rental property with a real estate agent, inquire about neighborhoods with the best rental potential.
Owning rental property can be advantageous both financially and personally. While there are risks involve, there are ways to mitigate the risks like hiring a qualified property management company to do it for you.
Working with Apogee Properties
Apogee Properties is Houston’s leading real estate management company. We work and live in Houston and our property managers are local. We have been in business for more than a decade providing comprehensive property management services in the Houston region ranging from a studio condo to a multi-family million dollar estate.
We look forward to hearing from you and sharing what we can offer to your Houston property. Contact us today to learn more!