We hear it all the time. Someone owns an income property, so they must be financially well off. Generally, a tenant will come out with a comment such as this. This article is written more to the tenants of the world, as opposed to the landlords. What the tenant doesn’t realize often hurts the investor, because they often times don’t fully understand the depth of the charges incurred by a landlord.
Archive for the 'Real Estate' Category
Over the course of time, the rental markets change. Part of being a smart investor is recognizing a changing trend and making sure that you are following along. A rental unit that is priced too high will not rent, or take longer to rent. A rental unit priced too low means that you are leaving money on the table, each and every month. Determining the market rental rate before listing an apartment rent is an important skill for any investor, but how are market rates determined?
Understanding what an income property costs on both a yearly and monthly basis are important considerations for the real estate investor. In addition, knowing the operating cost of each unit is important, as it helps determine the bare minimum rental rate. No one ever said owning income property was cheap! There are many expenses that need to be taken into account, such as:
- Mortgage payments
- Taxes
- Utilities (if included)
- Maintenance and repairs
- Management
- Insurance
- Legal and professional fees
(This post is part of our “Landlord Basics” series, which seeks to help the new landlord / investor understand some of the basics of tenant relations and property management. Click here to view the entire Landlord Basics archive.)
From time to time as you purchase buildings, you may inherit tenants that come along with them. If a tenant is paying their rent on time every month and taking care of the property, this is a very good thing. However, if a tenant is not taking care of a property, it can cause issues down the line when that tenant moves out. Some of these tenants will pay rent on time every month, and never call with concerns. Others will make themselves more evident by either not paying rent, calling constantly, or both.
Continue reading ‘Landlord Basics: Should You Keep A Bad Tenant?’
