Rental Property Isn't for Everyone - But is it For You?

Life as the owner of a rental property can be terrific if you are blessed with a best-case scenario: good tenants and a low vacancy rate. But sometimes things get bumpy.

Your down payment and monthly mortgage will not likely be your only financial demand since such expenses as property maintenance, major repairs and renovations can be constant.

It will take some time and expertise to find renters and to be able to deal with such things as contracts, deposits, rent collection and to develop a policy on resolving complaints. You will want to vet renters as best as you can because a bad tenant who’s late with rent or does not take care of the property can cause major headaches. Getting rid of them is not easy either. It involves time, effort and more money.

If you are determined to own a rental property, here’s a reality check: Be prepared to sit out vacancies. You need to be in the position to stay afloat financially when there is no rental income to offset property mortgage payments and expenses.

You want to be a savvy investor and realize that selling real estate is not an overnight transaction like liquid investments. Seek out guidance from Real Living Sales Professionals, and tax and legal professionals, to maximize the benefits of rental property ownership.