You’ve undoubtedly been hearing and reading about the “subprime lending crisis” hitting the real estate industry.Â The bottom line for buyers is that it may be more difficult to secure a mortgage in this atmosphere.Â It then follows that demand for rentals may increase.
That rising demand has encouraged many people to consider the benefits of becoming a landlord, or residential property manager.Â Some have donned that hat because they’ve been unable to sell and needed a tenant, while some are actively buying properties at lower prices and looking to profit from rental income.
In either case, consider a few tips before entering this type of venture.Â First, donâ€™t necessarily expect to regain your entire investment.Â Be careful not to overpay for a property, and also take care not to underestimate the cost of repairs and maintenance, which will likely have a large impact on your bottom line.
Two important people to hire: a property manager and an accountant.Â A manager will have knowledge of local ordinances and proper pricing, as well as how to locate responsible clients.Â An accountant, on the other hand, will have knowledge of tax breaks, write-offs, and deductions that will help you meet your financial goals.
Step one may be contacting an agent or broker with experience handling or even managing rental properties.Â Help ensure success with careful planning and support.
Bennington VT, Investment, Buying