Should you take the plunge on a rental property? Experts offer a qualified yes, provided you do your homework. Here are some things to consider before diving in.
Buying the 'Burg note: If you've been thinking of getting into the Florida real estate market by buying a house to use as a rental property, you really should find a Realtor familiar with the market and who can guide you through all the ins and outs involved. They can refer you to various lenders to help you secure funding, refer you to contractors to get the property ready for tenants, help you lease the property, or even help you find a property manager if you need one.
NEW YORK – If you’ve been watching reruns of HGTV’s “Income Property” and wondering if it’s time to buy a rental property and become a landlord, you’re not alone.
Between our slow-growth economy, historically low interest rates, and the mood of millennials to rent instead of own, income property has been on an uptick since the Great Recession.
In fact, real estate is now Americans’ favorite long-term investment, according to a recent Bankrate study. The popularity of real estate is at its highest point since Bankrate started the survey seven years ago.
Should you take the plunge on a rental property? Experts offer a qualified yes, provided you do your homework first. Here are some things to consider before diving into income property.
1. It’s not as easy as it looks
Forget the TV sitcom stereotypes of clueless landlords. To make the most of income property requires an accountant’s eye for detail, a lawyer’s grasp of landlord-tenant laws, a fortune teller’s foresight and, should you choose to manage your rental property yourself, a landlord’s firm but friendly disposition.
“Where people who want to become landlords fall short is, they don’t realize how much work goes into it,” says Diana George, founder of Vault Realty Group, now part of Century 21.
So before you leap in, you’ll want to consider whether you have the time and skill to put into managing a rental. While rental property is considered a passive investment, that doesn’t mean you’re fully passive in managing it.