Many people have considered rental property as a good long-term investment for retirement, while others may instead prefer the idea of flipping houses for a quick turnaround on profit. Unfortunately, it’s not always as easy and straightforward as television shows might make you believe. Continue reading below for all your need to know about rental properties.
Expense and Risk
Fixed expenses like the mortgage, insurance, and taxes are obvious and should always be calculated upfront before you make any decisions. However, there are also variable expenses, such as repairs, and upkeep. This could include lawn care, a new roof, plumbing, and appliances. It’s also worth remembering that property taxes are not guaranteed to stay where they were when you first invested. They can increase unexpectedly.
There’s always the risk of simply not having any renters. Your property could potentially sit empty for months at a time, so you’re not receiving income and you’ll be paying on the property. Additionally, major damage or evicting a bad tenant could land you in a legal battle, which will tackon costs that you may have never anticipated.
Being a Landlord
A good tenant is a dream, but a bad tenant can be a real nightmare. Tenants can cause damages, present legal problems, and otherwise turn into a major source of monetary expense, and stress. Screening tenants isn’t just recommended, but is ultimately essential. Background checks usually aren’t particularly expensive, and they’re worth every penny. When it comes to Athens, Ohio, rental properties, you should also remember that no news isn’t necessarily always good news. It’s a good idea to get in a habit of checking on your property, although it’s never a good idea to become a pest.