In places like Charlotte where the booming real estate market can drive rental rates higher, one may be inclined to invest in rental properties. As previously reported, CBRE has stated that average rent in Charlotte has reached $1000 for the first time this year. The commercial real estate services firm also expects that the average rent will continue to increase as occupants are urged pay more for office spaces, retail and industrial locations this 2016. So is becoming a landlord a good decision? It may or maybe not, there are many things to consider.
Like any other investment, becoming a landlord takes commitment. According to Zillow, the U.S. is preparing to see the highest median rents ever this 2016. Many lower-income Americans might also be forced to rent homes as they are likely to be priced out of homeownership because home values are increasing quicker than wages.
One of the very first consideration is that to become a landlord, one should be committed to maintain homes and deal with what a tenant needs, according to CBS News. John Nuzzolese, an East Meadow, New York-based landlord, reported said being a landlord is not a hobby so it should be taken seriously. It was also noted that for those who don't have the time to carry out the role personally should consider hiring property management professional or company.
Another consideration is that "quality rental" attracts "quality tenants," according to CBS News. This is where location become an important factor when investing on rental properties. Cheap rent is normally expecting in homes that require fixing and those located in less-desirable neighborhoods therefore these locations may not provide a good return on investment, worse bring more incidental expenses not worth the cheap investment cost.
Last but important, a prospective landlord should also familiarize himself with local and state laws and guidelines. For example there could be zoning ordinances that restrict a particular area from being used as a rental space
It is therefore important that before investing in rental properties, one should do an extensive homework.
