Rising home prices and tighter lending restrictions given rise to millions of American to opt to rent over owning homes. As a result rental rates are on higher and many homeowners are dabbling in investment property. Depending on the rental property, the financial gains can be significant, however not without some snags along the way. Owning rental property requires hard work, patience, and time to be successful.
Creekbend Property Management has provided some of the main factors to consider before making your investment decisions:
- How profitable is the investment? The main reason you’re considering rental property investment is to make money. Take a look at the rental markets in your area to determine demand and what other properties are bringing in. Look for rental property in areas where vacancy is low and the demand is high.
- Can you afford to maintain rental property? In addition to the monthly mortgage payments consider all the expenses that are required to maintain your investment; property taxed, homeowner’s insurance, routine maintenance and repairs. If you have a vacant unit sitting empty for a while, you may have to pay out of pocket to cover your costs.
- Do you have the time? Handling multiple rental properties is a full time commitment, even if you have one tenant, it can take a significant chunk out of your time. As a landlord you’re responsible for taking care of issues that will come up like leaking water heaters. Collecting and keeping track of rental payments, paying bills and expenses associated with the property. You may consider hiring a property manager to take care of the work for you.
- Do you have long term goals? Really take the time to consider what you hope to achieve before rushing in a deal regardless how good it looks on paper. Are you using the rental income to build your nest egg? Or generating enough financially to cover your expenses? What if the rental home was more work than anticipated? How would it affect you financially? Make sure you consider the answers to these questions to determine if being a landlord is right for you.
Make sure you consider the answers to these questions to determine if being a landlord is right for you!
Creekbend Property Management is located in Charleston, SC specializing in rental properties in downtown Charleston, James Island, Isle of Palm, Johns Island, Kiawah, Mt. Pleasant, Summerville, Goose Creek, Moncks Corner, North Charleston, and West Ashley. We are licensed and insured, providing leasing services, management services, maintenance, and most importantly; giving our property investors peace of mind!