Every investor wants to set themselves up with a portfolio the performs stably while offering opportunities to earn passive income. In the course of creating such a portfolio, you will undoubtedly consider the value of rental properties as an investment.
This investment type is popular for good reason. Rental properties can deliver exceptional value to their owners. But before you go investing, you need to understand why rental properties are in a class of their own compared to other investment types.
1. People will always need housing
First and foremost, housing is a commodity that will never go out of style. Everyone will always need a house in which to live. Whether that home is an apartment unit in a multi-family complex or a single-family home, by providing service through a rental, you are cultivating true value in your investment.
Because housing is such a consistent need, it also is much less volatile an asset and many other investment opportunities. In fact, the value of homes only went down during two of the last five recessions.
The right investment in a rental property will have the potential to not only retain its value but to appreciate as local markets grow.
2. Rental properties can earn passive income
Next, rental properties offer homeowners the chance to earn passive income through their investment.
While managing a property can be a full-time job, homeowners have the option of hiring an expert property management company to take care of the day-to-day tasks and maintenance needs on the property. From collecting rents to filling units, these professionals make a crewing rental income easy—all for a minimal fee.
If you're hoping for an investment portfolio that lets you sit back and relax, rental properties are right for you.
3. There’s plenty of variety among rental properties
An additional benefit of investing in rental properties comes from the wide variety that exists on the market.
From vacation rentals to turn-key homes, the opportunities are just about endless when it comes to finding the perfect property to meet your needs.
Maybe you want to home that can double as a vacation home during the holidays. Maybe you just want a stable source of consistent monthly income. You can devise the perfect rental property investment strategy for you based on your schedule, needs, and goals.
Speak with an expert real estate professional to determine the ideal investment for your situation.
4. You can choose how active you are in your investment
Rental properties are great for the added reason that owners have total control over how actively they want to manage their investment property.
As we mentioned, property management companies are out there ready to help you take the reins when it comes to caring for your rental unit and maximizing its value. On the other hand, if you want full control, it's yours.
As a landlord, a homeowner can handle the specifics of the lease agreement, rent collection, and property maintenance. The downside of this is that it will take a lot of work to protect your property and keep your tenants happy.
5. You can always recruit help
Unlike the majority of investment types, once you've invested in a rental property, you can always make the decision to invite in a third-party help to help you manage the obligations that come with the investment.
Other types of real estate investment, such as direct property or syndication investment, require either certain time limits on the investment or your participation and some kind of investor decisions. Extricating yourself from these duties isn't always simple.
With owning a rental property, however, you can call a property management company at any time to begin talks for readjusting your own responsibilities.
As you consider investing in a rental property of your own, keep in mind the potential of such an investment. You get to decide your level of involvement and the amount of revenue you will accrue each month as a result. Few investment opportunities offer this level of flexibility and convenience.
By putting stability and control directly into the portfolio of an investor, rental property stands out as a truly exceptional investment type. Speak with real estate and finance professionals to find the perfect investment property for you.
For more information on real estate investment and property management, contact 208.properties or find us on social media.
