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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This web page was updated on 01/30/2007.