The desire to earn a passive rental income from a property attracts many investors to the world of real estate. You are not alone if you are thinking of buying a property just to start earning a monthly rental income from it. There are both pros and cons to be a landlord. Of course, there is the prospect of earning rental income but there is also a lot of stress involved with being a landlord. But once you become used to the routine tasks, being a landlord can be a fruitful profession for you. Let us talk about the benefits associated with being a landlord.
You can start to earn a decent monthly income
Anyone who wants to become a landlord would be lying if he says he didn’t buy the property for a monthly income. In fact, the first thing that comes to the mind of an investor when buying a rental property is the prospect of monthly rental income. If the building is priced right and the location is good, you should attract a steady stream of tenants. Their rent payments will not only help in paying off your mortgage obligations but also leave you with a net income after paying all other expenses. Also, if you have bought the property to sell it at a profit in future, renting it out is the best option to meet all the expanses such as maintenance, property taxes, and insurance.
Asset for future
Having a portfolio of several rental properties gives a lot of peace of mind to you. This is because you know they are your financial assets fetching rental income for you as you grow old.
Rental properties bring relief in taxes
There are lots of tax reliefs that owners of rental income properties receive while these are not available to ordinary homeowners. They can avail benefits of depreciation, expenses related with travel and other services, expenses on repairs and maintenance, and even on maintenance of an office when filing income tax returns. You do pay tax on the rental income you earn but these tax reliefs make it easier for you as a landlord.
Role of property managers
You can manage one or two properties on your own, but it becomes increasingly difficult to manage several properties. This is where property managers come into picture. They can not only take up many of your responsibilities but also take a lot of stress from your shoulders. Of course, you share your profits with property managers but they also complete many of your tasks as a landlord.
- Screening of tenants
- Rent collection
- Attending to requests of repairs
- Maintenance of your property
- Handling disputes and quarrels between tenants
By paying a fixed commission to a property manager, you can enjoy stress free income from your rental property.
Property Management Service Areas