![\"Investing](\"https:\/\/theme.visualmodo.com\/financial\/wp-content\/uploads\/sites\/62\/2019\/04\/Investing-In-Rental-Properties-Made-Easy.jpg\")
<\/p>\nIt\u2019s a good time to be a landlord. Since 2007, the number of renters nationwide has steadily increased. With housing prices still high, people won\u2019t stop renting anytime soon. Combine the demand for rental units with the chance to earn passive income, and residential real estate becomes a solid, rewarding investment. But landlords don\u2019t just sit and let the money roll in. You\u2019ll need to do plenty of research before even buying a property. You\u2019ll also perform continuous maintenance, keep up to date on housing law, and balance tenant satisfaction with your own needs. Being a landlord will keep you busy!<\/p>\n
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For long-term savings, property purchased wisely can\u2019t be beaten. The rent you receive supplements your monthly mortgage, and possibly other expenses. Your rental property\u2019s also ideally appreciating in value over time.<\/p>\n
As a property owner, you\u2019re eligible for tax benefits. You can deduct depreciation costs, property management expenses, and insurance, among other expenses. (Make sure to keep accurate records.) The money you earn\u2014and save\u2014over time can help you achieve financial goals. Day to day, the revenue stream helps out, too. Landlord Holly Johnson, who\u2019s owned two single-family rental properties for a decade, plans to save rent money for her children\u2019s college education and her own early retirement.<\/p>\n
Tenant problems are your responsibility 24\/7\/365. Flooded apartment? Complaining neighbors? You\u2019ll get the call. You can hire a property manager to assist with the maintenance work, but you should be on top of the situation, too. You need a calm and level head. Not to mention a thick skin\u2014when the time comes to evict a tenant who can\u2019t pay, you have to act as a business owner.<\/p>\n
\u201cThe truth: It\u2019s actually been a lot of work,\u201d says Johnson of her rental properties. \u201cFor example, we\u2019ve spent far too many weekends painting and cleaning our properties in between tenants. We\u2019ve driven to and arranged countless meetings to discuss remodeling projects and repairs. We\u2019ve had to deal with a whole host of random issues such as late rent payments, feuding neighbors, and secret pets.\u201d<\/p>\n
And even when tenants move out and you have vacancies, you still need to pay the mortgage. Ultimately, the financial risk is yours. Here\u2019s how to make the investment worthwhile.<\/p>\n
Investing in real estate can be profitable, but it\u2019s not the get-rich-quick play sold by some books and TV infomercials; it takes know-how, capital, and a lot of hard work. Successful real estate investors aren\u2019t just good at spotting deals, they\u2019re comfortable with working with a team of realtors, mortgage brokers, property managers, lawyers, and others to run what is essentially a part-time business.<\/p>\n
Ultimately, the more work and effort you put into choosing a property to buy, finding tenants, and improving\u00a0your property, the more profitable you\u2019ll be as a real estate investor. Being a successful landlord is an investment of time and money. But if you stay on top of things, you\u2019re more likely to reap large returns.<\/p>\n","protected":false},"excerpt":{"rendered":"
It\u2019s a good time to be a landlord. Since 2007, the number of renters nationwide has steadily increased. With housing prices still high, people won\u2019t stop renting anytime soon. Combine the demand for rental units with the chance to earn passive income, and residential real estate becomes a solid, rewarding investment. But landlords don\u2019t just […]<\/p>\n