So you’re interested in becoming a landlord, are you? Renting out apartments Houston is a fine way to earn a living. Investing your money into a few buildings then renting them to tenants and coming back after a while to collect the rent isn’t much of a hassle. Sounds simple enough! However, there are a few pros and cons about this business, and I will go through them with you.
First of all, it’s a form of passive income. You do the research, investing and all the hard work and then money comes rolling in by itself without any more additional work. Sounds like a dream job but this business has its cons.
Since you invested in real estate, there is a chance that your property could increase in value allowing you to raise the fixed rental cost for your tenants, meaning more money for you.
You can use borrowed funds to purchase rental properties. This means you can obtain a rental property by paying only a fraction of the true value. In doing so, you can be able to secure a property on debt and won’t have to use other assets.
When your apartments in Houston have been paid off, then the money coming in will become profit, and if you receive 4,000 dollars a month, it is almost equivalent to another paying job. So the income is really good after you pay off for your properties.
There are a lot of issues renting out properties and dealing with bad tenants isn’t the only one.
Purchasing your rental properties will take a huge chunk of money to do so and on top of that you might have to spend a good amount of money for the property to become rentable.
You will also have to advertise your apartments for rent. You can do this through the newspaper or by using the internet and uploading your rentable apartments on a website.
What do you do when you arrive in your property for a check-up, and they have trashed the whole place up? There a plenty of landlord horror stories of their property being burn to the ground or the tenants leaving the place in a state of the mess with broken pipelines and walls littered with holes. It is almost impossible to prepare yourself from the unexpected expense. The cost of repairs can almost make renting out properties to be unprofitable.
The final fine to watch out for is bad tenants. Bad tenants coming in a shapes and sizes, the most common ones are the late rent, payers. They tend to not pay rent on the exact deadline and for this could be a hassle since you will have to chase them around to get your rent. Now there are tenants that could possible break your property and go running off in the dust so you have chosen wisely to who you rent your property to, or you will be in a heap of stress