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Property investing to make a profit by renting out is no longer the domain of the traditional wealthy landlord stereotype. Anyone with the means to secure and service a mortgage can purchase a house or apartment and rent it out to tenants with the view to (hopefully) making a profit. There are, of course, caveats to that, and it’s important not only to do your research, but also engage the help and advice of property experts before you make any financial commitment. If you’re new to the investing game, you might be wondering how you can make money from being a landlord in somewhere like Rochester, NY (which is a popular place for investors for many reasons). Here are three of the most basic ways you can profit, with tips from a professional in rental property management, Rochester NY. Rental Income The most obvious way to make money as a landlord is through rental income. The key is consistency, though, and that relies on multiple aspects. You need to have good tenants, who pay their rent on time; you need to maintain and achieve a realistic rental income for the market and location; and you need to ensure that the returns are enough to cover any mortgage repayments, maintenance, and other costs of running before taking a profit (this is called determining the gross yield). There are also various legislative requirements to comply with. If you employ the services of good local rental property management, Rochester NY, not only will they ensure you attract and keep quality tenants, but they’ll also take care of rent collection, maintenance and all compliance issues. You’ll pay them a monthly fee and in return you’ll receive peace of mind and regular rental income. Capital Gains Wealth creation through property investment can also be achieved through capital growth — which basically means that the value of the house or apartment grows over time, creating equity (which can often be used to add to a portfolio). It should be noted that capital growth is not guaranteed, which is why it’s so important to a) understand your personal financial goals and expectations, and b) ensure you analyse the viability of a particular property before you purchase it. This includes aspects like size, type, location, and potential rental income. It’s also a fact that the market is cyclical, so when you purchase can also be an important factor. Again, nothing beats expert local advice, and you would be well advised to take it before you begin your search and definitely before you purchase. Tax Benefits Depending on where you live, there are various tax benefits of being a landlord. You’ll need professional guidance from a specialist taxation accountant to ensure you’re working within the law, but some of the most common claimable deductions are as follows. Costs of tenancies: this includes things like marketing, advertising, and letting fees paid to your rental property management (Rochester NY has some excellent professional companies). Maintenance/repairs: the definition of these can be very specific, particularly if renovations are involved. Make sure you speak with your accountant to get the details so there is no ambiguity. Interest: you can claim interest paid on an investment loan. Depreciation and costs: you may be able to claim depreciation costs on the asset, which will be incorporated into how much tax you pay for the year. You can also claim some of the costs involved in owning a rental, including things like insurance, owner’s corporation fees, and gardening costs. Engaging the services of a reputable and experienced property manager right from the get-go will ensure that you purchase the right house or apartment that fits your investment goals. They will then take care of the day-to-day running of things, so you continue to reap the profits in all the above ways. When it comes to rental property management, Rochester NY has some highly reputable companies, but you should always do due diligence before you sign anything. Author Plate Danny Torres is from Torres Turn Key, a property management company in Rochester NY with more than ten years’ experience providing a holistic service for both domestic and international investors. When it comes to rental property management, Rochester NY investors can rest assured they are in good hands. The city is one of the most exciting places to invest in both commercial and residential properties and the company brings together a host of experience and specialist knowledge to build long-term relationships and create maximum value and benefit for their customers.
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