Owning a rental property may be of the good side but there are some aspects which lie on the bad side as well. These are some points starting with the pros and following up with the cons.
➊ Increase of Property Value
This is no doubts that every properties will appreciate over time. If your rental property value have rise up to the certain amount which in you’re expectation, you can sell it off to earn a good profit.
➋ Second Source of Income
A rental property will generate monthly rental income for you, when the property is rented out to the tenant. It will bring great opportunities in making more money besides the current job that you are getting paid for. With the rental income, you can get these money to invest in another property and generate more and more profit to yourself.
➌ Mortgage Paid
Good news that you’re need not to worry about the monthly loan installment, as your tenants are paying for it in a way. Therefore, it is important to set the rents equal or higher than your monthly loan installments.
➍ Diversify Investment Portfolio
With rental income from existing rental property, you can make use of these profit to invest in various kind of property or at different locations. This will create a different look on your investment portfolio.
➎ Tenant Management Is A Hassle
Tenant management is a knowledge, otherwise, it can be a hassle for yourself. If you have no capability of solving problems and communication, you just brought yourself a hassle and headaches. It would not get better unless you are learn the responsibilities as a landlord.
➏ Unexpected Bills
You will come across with very unexpected bills along the way. This will incur in spending money to fulfill those bills such as services.
➐ Not Taking Good Care of Property
You can’t guaranteed that the tenants will take care of property on behalf and follow the rules bounded in the property. The tenants may take things for granted just because the property does not belong to them.
➑ Difficult To Find New Tenants
There will be a day when your existing tenants decide to move to other place for some reasons. This will be a challenge in finding new tenants to keep the property under occupied. You can’t make your rental property stay vacant as it can affect your profits.
Last but not least, every good things always come with bad side. You can only build wealth from rental properties by study hard, enhance your capability of solving problem and communication skills. Keep in your mind that tenants are your customers, you need them to let your rental property maintain positive cash flow. If you’re being bad attitude towards your tenants, you can expect how will they treat your house in returns.
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