Owning property comes with its own share of pros and cons. Here’s a roundup of both:
You get to have steady rental income, says Investopedia. That also brings tax benefits to the table. In case you don’t get any net cash flow on the rent after all the expenses have been deducted, then you could even have that rental income tax-free.
Your home’s value increases over time. You can also earn the equity investment you have in the property if it is covered by the amount you earn, which can net you a huge tax break.
If you don’t want to sell a home but don’t know anybody who could live in the property, you can rent it out instead. That way, it can generate some rental income instead of collecting spiders and dust.
You’ll have to deal with awful tenants, which can take up a lot of your time. From eviction notices to court hearings, you’ll need to take care of everything. It can also be tedious to keep looking for great tenants or deal with a rental property with quick turnovers.
When damages to the property happen, you’ll need to cover the cost of the repair. Since all properties need regular maintenance checks, you’ll have to prepare for those as well. That will prove handy and help you deal with building problems, such as a leaking roof or plumbing issues.
If your property isn’t situated in a high-traffic area, then you might have a problem getting regular tenants. You’ll really need to take the time to find them whether through online or offline methods.
A good way to handle these problems is to hire a property management company to help you out. With professional assistance, you can take advantage of the pros and lessen the cons of owning rental properties.