Tip of the Month - April 2010
MAKING THE RENT
Source: Real Estate by Laura Washington
Rental property might not be a
glamorous investment, but at least it seems rock solid. Not
so. Today’s Landlords not only have to think about soft
housing markets and deadbeat Tenants; they also have to contend with
federal and local laws that can lead to extra costs faster than you can
say “lead paint”. Statistics have shown that 27% of
Owners and Managers of multiunit housing lost money. And it gets
worse. When it comes to single family properties, 44% of Owners
have suffered losses.
So is there some trick to making a property pay off? Part of
the secret is knowing the risks-and that applies even if you’re
not presently looking to buy real estate for extra income. Some
retirees decide to rent out their home when they head for sunnier
climates. Other people find that they become "accidental"
Landlords before they’ve had time to prepare-perhaps after a job
transfer or when they inherit a property. Whatever the situation,
you can save yourself a lot of frustration and expense by avoiding five
(5) perennial trouble spots.
#1-Don’t underestimate variable costs
#2-Understand your taxes
#3-Know your insurance expenses
#4-Consider hiring a Manager
#5-Prepare for the costs of compliance
We will discuss perennial trouble spots during the next five (5) months.
Tip from Crossett Real Estate
In evaluating rental properties, it is suggested to determine the goals and objectives of Owners and Landlords.
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This web page was updated on 03/28/2010.