There are advantages and challenges of owning rental properties. When you consider alternate investments, rental properties emerge as a sound strategy to park your money but there are some uphill tasks that you must attend to as well.
Let us first explore the truth about owning rental properties, the merits and demerits, then we shall explore what you should do to make your life easier. Making use of YNM Property management services can make owning rental properties a breeze – contact them today if you are interested in learning more about these services.
Pros of Owning Rental Properties
- A rental property is a safer investment. Whether you consider shares or any financial product such as mutual fund, you would be exposed to fluctuating prices and market risks. Your investment may dwindle down, or even not generating a profit. A property will always undergo appreciation over the years. If not the house or property but the land alone will make way for some profit.
- Rental properties will not only allow a profit or return on your investment but would also get you a recurring income. You can recoup your entire investment and make profits even before you consider selling the property.
- Rental properties come with several tax deductions, they are a tangible fixed asset and one doesn’t have to be a real estate mogul to make such investments.
Cons of Owning Rental Properties
- If you are planning to take a loan to buy a rental property, then the rent may not pay for the mortgage. You may need more funds. It is a game that only those with enough cash must consider playing.
- Managing rental properties is an uphill battle. You would have to deal with vacancy. The times when you don’t have any tenants would still require you to pay the mortgage.
- Entering and exiting the rental property business can be quite costly if you haven’t been into it for years to have made enough money.
- Poor choice of property, bad location, ineffective marketing and wrong management practices can easily lead to substantial losses. Running a rental property is not a cakewalk.
- You would have a substantial investment stuck in a product that cannot be diversified and liquidating it is not simple either, especially when you have tenants and you need to raise some funds.
Hire the Right Expertise
At YNM our property management team can monitor and look after your real estate investments, ensuring that your property is maintained to the highest possible standards. A YNM property manager will not only liaise directly with tenants on your behalf, but also make themselves fully accountable for managing one of your most important assets.
Finding the right property manager who can maintain and manage your property whether it’s a piece of land, block of units or house, will ensure your real estate asset is taken care of. At YNM, we have a reputation for providing exceptional property management services to our clients in Sydney’s eastern suburbs and beyond. We are proud to offer a maintenance package which is supported by our vast network of the best licensed and insured property support services so you can be sure that coupled with our ongoing commitment, your investment will always be in safe hands.