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.