When thinking of possible ways to increase your income, have you considered becoming a landlord? Out of many possible investments, there are several benefits to renting a property that you already own or one that you plan to purchase.
The Freedom of Having Passive Income
Did you know that the latest labor statistics suggest that on average Americans tend to work more hours per week than in other industrialized nations? Did you know that we also take the least amount of vacations?1 Although landlords are responsible for necessary repairs, and maintenance of certain house facilities and appliances2, only a fraction of your time is required for these tasks and the potential return on your investment compensates for this. Furthermore, you might opt to benefit from Phoenix Property Management services. A few examples of these services include rent collection, lease enforcement, drafting of your lease contract, HOA correspondence, and marketing. Hence, if you want to increase your income and have more time to enjoy your gains, then don’t underestimate the power of being a landlord.
Low Barriers to Entry
In order to reap you must first sow… but what if you don’t know how to sow? Entering certain investments requires a substantial amount of technical knowledge. How can you invest your hard-earned assets when you barely understand the stock market, don’t have an ingenious business idea, and are disappointed with the interest rates offered by bank accounts? Renting a property is certainly an appealing option because you don’t need to be an expert in the subject to reap the benefits. Risks do exist, of course, just like in any other business or investment. However, you can mitigate many of these risks by utilizing Phoenix Property Management to help you conduct credit and employment checks on potential tenants. In other industries you could also hire the help of professionals, but in many cases, these services tend to be very expensive.
Demand for Rental Property is Growing
The Joint Center for Housing Studies of Harvard University presented research in 2013 demonstrating that Americans are increasingly turning to the rental market to fulfill their housing needs3. Regardless of whether you are a savvy investor, or you simply own a property and don’t wish to sell it yet, this is a fantastic opportunity to become a landlord. The higher demand for rental housing means that landlords have a greater probability of maintaining their properties occupied. Additionally, if you use Phoenix Property Management services you can attract a lot more quality tenants.
Retain a Valuable Asset
Since house prices are still recovering renting is a win-win situation in the long run. For investors, this is a great time to buy real estate property because as their asset appreciates they can make a rental income. The same rule applies to homeowners who are waiting for the market to recover to sell a property they no longer want. So don’t wait too long and take advantage of the great benefits of being a landlord!