Owning a rental property may be of the good side but there are some aspects which lie on the negative side as well. These are some points starting with the pros and following up with the cons.Pros and Cons of Owning Rental Property Click To Tweet
Passive Income Stream
You will continue to generate more and more income over the years. It will bring great opportunities in making more money besides the current job that you are getting paid for.
Value of Property Increases
Your property value will appreciate over time. The price of the property would not remain the same. Value might hike up which results in the increase of the property price. When you are confident, you can sell it off for a good profit.
Even if the property is under mortgage, you won’t have to worry. Your tenants are paying for your mortgage in a way.
Diversify Investment Portfolio
Instead of having one or two property investments of the same type, try investing on various kind of property. This will create a different look on your portfolio.
Tenant Management Is A Hassle
Managing your tenants can be a hassle if you are not able to step down and solve problems that are brought up by tenants. It would not get better unless you are prepared to handle the responsibilities as a landlord.
Not Taking Good Care of Property
The tenants may not take good care of the property and respect the rules bounded in the property. The tenants may take things for granted just because the property does not belong to them.
You will come across with very unexpected bills along the way. This will incur in spending money to fulfill those bills such as services.
Difficult To Find New Tenants
There will be a day when your old tenant will decide to vacate. This will be a challenge in finding new tenants to replace the old tenants to keep the passive income generating.