Investing in the real estate rental community can be a slippery slope and risky at times. Vacancy rates have been as low as 1.9% in 2020 and rising to 3.2% over the past year due to pandemic fallout. But many have invested in rental properties and found that they have indeed been very prosperous over the years.
Consider these tips:
- Get your finances in order – determine what you can afford (even if your rental property is vacant for a while)
- Have your team in place (real estate experts, lawyer, accountant, insurance agent, mortgage broker, etc.)
- Access your real estate team for rental properties where there are jobs and growth
- Find the right insurance for your needs
- Educate yourself with the landlord-tenant laws for your area
Advantages of rental properties
- Rental income can provide a steady cash flow
- Appreciation of your property over the years
- Tax deductions available for some expenses
Disadvantages of rental properties
- Emergency calls for repairs on a 24hr basis, collecting rent or difficult tenants
- Unexpected expenses (maintenance and repairs and some upgrades)
- Rental income is taxable
- Vacancy rates can change (might have times where there are no tenants)
There are other considerations to think about also. Do you have time for your tenants, or do you need a property manager? Treat your rental property as a business. Screen any potential tenants and build a good relationship with them. Be hands-on in your business; it will benefit your bottom line and keep good tenants.
Our Real Estate Team
You can’t always know what real estate investments are out there without a good real estate team to be on the lookout for you. Our Anne Winch Real Estate Team can be there for you to find the investment opportunities before they hit the internet. It is important to have a real estate team you can count on to help you find these opportunities so that will free up time for you to work on any investment properties.
Leave the negotiations to us as we have many years of experience. We would love to help you find the right rental property for your next investment. Give us a call, text, or email to find out how we can be your real estate team on the road to your future real estate investments.