1. Need for Housing

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Pro

Literally everyone wants to have a place to live. A roof over your head is something just about everyone would list as a top priority in life. Yet homeownership in America is below 64%. So close to a third of the population still needs a place to live, and where do they find that place? A rental.

The need for housing will never go away. Some areas might get overcrowded, but there is always a need somewhere for more available living quarters. A huge bonus would be if you lived in or near a college town. Students are always looking for a good deal on housing, so if you are nearby to campus, you’re in business. For instance, if you were near Knoxville it could be worth consulting with West Knoxville real estate experts and looking for property nearby to invest in. There are around 8 colleges in the area, so no shortage of students looking for accommodation! You would need to check local university and college websites to see if they require anything specific from students or landlords.

Con

While just about every industry is hurt by a dip in the economy, people will still need a place to live. That isn’t to say that property investment is immune, there have been several real-estate market issues over the past 20 years. So do your due in knowing market trends before jumping in, perhaps consider consulting a real estate expert!

2. Control

Pro

Is anyone ever really in control? There are so many factors outside our control. As a property owner, you can take control of a number of things. You get to control things like rent, whether you provide any utilities or furniture, and who your renters are. This gives you a feeling of comfort and control that buying other investments can’t provide. Unless you own a large portion of stocks, your opinion is not going to matter to a company.

Con

While you are in control, that puts a lot of responsibility on your shoulders. You have to ensure that the apartment is a decent place to live, or it won’t be filled. You have to be responsible for repairs, insurance, and other fees. Owning a rental property comes with a number of costs, and you need to be prepared for that. Thankfully the experts at residential lettings doncaster can help you out if you are having difficulty getting started in the rental business.

3. Cost of Rent

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Pro

Like warm air, rent rises. Well, it usually does. That is a definite pro for property owners, as they can make more money off their investment. Raising the price of your rent will allow you to potentially see an increase in your cash flow, which is the whole point of investing, right? Seems like a win for the owner, although as a renter I can verify that increasing rent is not cool.

Con

Usually, when rent goes up there is a reason for that. It may be a higher cost on your lot fee or another unexpected fee. That seems logical, you get hit with a higher fee, so you raise the rent to compensate. The problem is that you aren’t actually making any more money. A very rudimentary example would be if you charging $900 a month for rent and your average monthly costs are $500, you are making $400 a month. If one month your costs go up to $600, you may raise your rent to $1000 monthly, but as you can see by doing simple math, the profit is still $400.

Note: These numbers are just figures and I am not claiming in any way they are realistic. There are a lot of costs and fees that go into owning property and this does not reflect those, these numbers are simply being used to prove a point.

4. Save Costs

Pro

As a property owner, you have the ability to cut some significant costs. If you are handy, you can do necessary repairs and avoid having to hire someone to do them. Even if the part is pricey, you are still saving on the labor costs. You can even help your tenant maintain their own washer dryer rental as to give them some independence as well as cover the cost of repairs and maintenance on those appliances without doing it yourself.

Many property owners hire a management company to handle this side of things for them, this can be a great way to have complaints, queries and any other property related qualms handled in one place and let’s you focus on other things. When things like repairs do arise, the management company will forward you a list of what needs doing, at this point you can decide to action the repairs yourself or get in professionals to do the job, which is the more common option when landlords have multiple properties. Doing a search online for property management near me can give you a list of suitable partners online, the decision of which one to go with will likely depend on the kind of properties they have experience with. So for instance if you own a flat or several apartments, you’d want to find one who specialises in these so that they have the right knowledge to aid in maximising your rental income.

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Con

The downside to this is simply that you will be spending more time at your property, Being a hands-on property owner isn’t bad, and many people prefer to do it that way. If you are already a busy individual, having to visit your property all the time is not going to help your schedule or attitude.

Property investment is a great way to go if you are looking for a solid investment to last over many years. If you are smart and do your research well property ownership could suit you very well. Some people buy a little house and rent it. Others build apartments. Regardless of the size of your property, it can be profitable if you invest the necessary time and effort into your investment.

The post 4 Pros and Cons of Property Investment appeared first on InstantELLA.

As a rental property owner, you would be responsible for any issues your renters might experience from bug problems to broken pipes. You would also need to know and understand the legal side of being a rental property owner. If you’re considering renting property here are a few things you may want to consider.

Commitment

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Being a renter requires more from you than just the initial purchase of the property. The care and upkeep of the property will most likely be entirely in your hands. That doesn’t necessarily mean you have to do it all yourself, but you will be responsible for ensuring that it does, in fact, get done.

Whether you hire someone like this handyman in Portland to take care of maintenance, or are able to do the jobs yourself. You’ll need to make sure the pipes are getting fixed, doorknobs are being replaced and that you’ve got a roof repair service in if there’s any signs of leaking. You’ll also need to keep the yard in mind. Does your property have grass that needs cutting and bushes that need trimming? Will you need snow removal set up during the winter months? And in terms of emergency maintenance, will you need to invest in commercial floor cleaning in Salem, OR (or wherever it is your property is located) if there is a leak or other malfunction that results in damage? You can work these things out with your tenant to decide whether they take responsibility or whether you will do them yourself.

How To Collect Rent

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Getting paid is a wonderful thing. Lots of people prefer to do online payments these days since they can to it from the comfort of their living room. Though it might be easier for you if your tenant just writes you a check, consider that it might be best to set up on online payment option for their convenience.

Legal Problems

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It’s good to look ahead at possible problems that could arise. Before you jump into being a renter make sure you check local and state laws and guidelines. Some ordinances and associations won’t allow rentals in certain neighborhoods. Some places also have special taxes or fees that apply to rental properties.

Do your research before making an investment. It would be awful to put all that money into a property just to find out it can’t actually be rented out in the area that it’s located in.

Tenant Screening

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“I always say that 95 percent of a landlord’s problems can be eliminated in the tenant screening process,” John Nuzzolese, a New York-based landlord, real estate broker and president of the Landlord Protection Agency, says.

Always run credit and background checks on your applicants and don’t hesitate to contact their past two landlords. If you’ll be allowing pets in your rental property, but you’ve stressed that the pets need to be friendly then there is nothing wrong with setting up a meet and greet to ensure the people and the pets hold up to what they’ve put on paper.

Tenant Issues

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You will need to predetermine how you will deal with tenant problems. This is when having a property manager really comes in handy. If there are any renter problems than the manager will usually be the one to deal with them.

If you have a situation where a tenant needs to be evicted, take them to court first. If the judge rules in your favor have local law enforcement evict the rentee. That is their job, not yours. If you try to forcibly evict someone you could end up getting into trouble.

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Take all these things into careful consideration. If you go into being a landlord thinking that it will be a side job that you don’t have to worry much about, you might find yourself sorely mistaken. If you aren’t sure if this is for you, you might want to consider finding a property manager to help you. Just make sure you carefully map out your game plan and you should do great at being a rental property owner!

The post 5 Things To Consider Before Becoming A Landlord appeared first on InstantELLA.

Now, most amenities you could probably do without, but if you’re in a position where you’re moving long distance or pretty frequently, having a furnished space may be one of your must-haves, but a furnished apartment will come with its own downsides.

Moving

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Getting a furnished place is great if you want to avoid the heavy lifting of moving furniture in. It also means you can move in and out more quickly since you won’t need to spend time finding extra hands and vehicles to help you move everything.

However, getting a furnished place may become more of a hassle if you already have some or all of your own furnishings. You may have to find a space to store them in and, depending on your choice of storage, pay a storage fee you hadn’t been planning on.

Costs

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If you don’t have your own furniture already, you likely won’t need to worry about any storage costs, but you may see higher expenses elsewhere. If a home comes furnished, it will likely have a higher monthly rent, and if you choose to rent from a furnishing company, that will come with its own monthly charge.

You’ll want to compare this expense against the amount you would need to spend on purchasing any items you don’t have. You may find that it’s cheaper for you in the long run to have a furnished apartment.

Durability

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Trying to furnish your own space may mean scouring charity shops for pieces that are well-used but still in decent condition, but there’s no guarantee you’ll find what you’re looking for.

One major benefit of getting a place that comes furnished is someone has already invested in nice, updated pieces that will last. The only real downside here is you’ll be expected to take care of those pieces so they’ll continue to be in good shape, which may mean specific rules or care that come along with your lease.

Style

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Last but not least is the style and vibe of your space, and your furniture plays a big role in this. Chances are, if the apartment comes furnished or you’re outsourcing to a furnishing company, there will be a consistent style with each piece, meaning your home will look put together will very little effort on your part.

But it doesn’t mean that style will be to your taste. If the owner is furnishing it, you’re stuck with that style, but if you’re using a furnishing company, you may be able to choose from several style options to fit your own taste.

Open Communication

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Most property listings, like those on rooftoprentals.net, will tell you what items are and aren’t furnished. If you find a place you absolutely love that doesn’t fit your furnishing needs, it never hurts to reach out to the owner or property manager.

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You can find out if they would be willing to furnish some pieces that you don’t have or remove pieces to make way for your own.

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