More and more people are taking the leap and investing in the rental market as a way to supplement their income, or as a business venture in its own right. There are a number of things to consider, as with any large investment, but it can be a really good way to make significant returns.
Location is one of many things to consider when renting out a single home, or when undertaking large scale property management. Rochester NY, for example, offers a lot to potential investors because of its continued popularity with renters. Although, even if you have already picked out the perfect location, it’s important to know the pros and the cons before deciding if it’s the right move for you.
Pros of Investing
1. Tax Benefits
You may well be able to reduce your tax burden as a result of deductions you can make from your real estate investment. Fees that you pay towards property management, maintenance and insurance can often be deducted - leaving you with a smaller tax bill.
With a bit of luck, it’s not uncommon to find that your home will appreciate significantly over time. This can be even more effective at generating profit if you’re able to carry out repairs and maintenance that bring the property to a higher standard. To find out about great areas that are undervalued you can turn to a company that does property management. Rochester NY is just one example of an area that insider knowledge can help with when it comes to appreciation.
3. Regular Income
Maybe it goes without saying, but the single biggest pro of investing in the rental market is the fact you’ll have regular, recurring income. Not only that, but rental market fluctuations mean that sometimes your rental value will increase year on year without any material changes being made to the building.
Cons of Investing
1. Lots of Cash Upfront
To get the most out of the market, you’ll likely need more cash upfront than you would for other types of investments. A quarter of the value of the property is a good amount to aim for when it comes to an investor’s down payment.
2. Time Intensive
Your time is every bit as valuable as the property you’ll be purchasing, so it’s good to be aware that investing in the rental market can be very time intensive. A handy way around this is to engage a property management company to handle the laborious aspects of the process.
3, Unpredictable Tenants
Ultimately, your tenants are the source of your income, so you wouldn’t want to lease your building to anybody who won’t take care of it, or who would delay or miss rental payments. There are checks that you can do to help with this aspect but, again, it’s good to have some professionals there to take care of tenant relationships where possible.
Professional Property Management
There are a lot of things to think about when making the decision to invest in the rental market, and although there is every chance you’ll make a good return on your investment, having people to help you is always a good thing. For that reason, it’s important to engage a company that can help you with every aspect of property management. Rochester NY and places like that will always have eager renters, but having expert property managers can ensure that you experience as few hiccups as possible.
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 property management, Rochester NY is one of the most exciting areas to invest in both commercial and residential properties. 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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