Tip of the Month - February 2007
Making the Rent
Source: Money: “Real Estate” by Laura Washington
Rental property might not be a glamorous investment, but @ least
it is rock solid. Not so. Today’s Landlords not only
have to think about soft housing markets & deadbeat Tenants;
contend with federal & local laws that can lead to extra costs
faster than you can say “lead paint.”
So is there some trick to making a property pay off? Part of the
secret is knowing the risks-@ 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 & expense-by avoiding five (5) perennial trouble spots.
Don’t underestimate variable costs.
Understand your taxes.
Know your insurance expenses.
Consider hiring a Manager.
Prepare for the costs of compliance.
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page was updated on 01/30/2007.