Have you given any thought to investing in rental properties? Real estate has historically been a sound and stable investment. If done right, investors can make extra income and gain an investment that requires little oversight. Below, we tackle the good, the bad and the ugly of real estate property investments.
It’s great to own a home. It’s even better to generate income from that investment. Rental properties can provide retirement income or supplement a lavish lifestyle. Whatever your reason for becoming a real estate investor, rest assured that you’re not alone. Industry disruptors like VRBO and Airbnb have turned the hospitality industry upside down. Short term rental properties have cropped up everywhere, forcing hotels to become more competitive. The good news is that this has made it easier than ever for property owners to create revenue streams from their investments.
Being a rental property owner has its drawbacks. Clients can be finicky. Prepare to answer calls 24/7 and cater to their every need. Keeping clients happy equals good reviews. Good reviews equals more clients. More clients equals more money. You get the picture. It is worth it to take your clients’ concerns seriously.
Another potential negative to owning a rental property is the upkeep. The more you own, the more you need to take care of. You want to preserve your investment. Hiring a property management company and a good cleaning service can take care of this burden. If you don’t want to cut into rental revenue, you can do the cleaning and upkeep yourself. Remember that a clean, well-appointed property will attract more clients.
Some things you just wish you didn’t have to deal with. Unfortunately, the more popular your rental property, the higher the chance of pest infestation. Hotels have been dealing with pests like bedbugs and fleas for years. Are you prepared to take care of pests as well? A good cleaning service and regularly scheduled pest control appointments should prevent any problems from arising in your rental.
Being the owner of an investment property is not carefree. If you’re considering investing in rental properties, contact our team at R.H. Blanchard help you make an informed decision about next steps when it comes to renovations. Then sit back and enjoy your extra income!