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This
is an Insurance article by an independent author and jml
Insurance takes no responsibility for its accuracy or content
Risk and
Benefits of Being a Landlord
By Mika
Hamilton “If
your thinking is sloppy, your business will be sloppy. If you are disorganized,
your business will be disorganized. If you are greedy, your employees will be
greedy, giving you less and less of themselves and always asking for more.” -Michael
Gerber Investing
in real estate is a great way to increase your wealth through capital apprecation.
However, if you are interested in buying and renting residential properties there
are several things to consider. Being a landlord can be extremely stressful and
expensive if you have managed to invest in property which has not been well maintained.
In this article, we will discussion the benefits and risks of renting out residential
real estate. One
of the biggest benefits to renting property is that it is very lucrative. Not
only are you making an income each month you also possess a real physical asset
which is quite different then owning stock you will never be able to see or touch. Many
people just are not comfortable owning something they can no see. In the recent
decades, many people have decided not to invest in the stock market and place
all their money into real estate. Who could resist! With rapidly increasing prices,
high demand, and almost no risk – the benefits are obvious. Rental
real estate gives you a monthly income. Property also increases in value and your
capital appreciates each year. Real estate is one of the few investments that
do extremely well in time of increase inflation. Remember,
rental real estate can also be purchased with borrowed money and this is called
leverage. For almost no money down an investor can own and rent a large residential
property like condos or apartments. If your rental properties cost you more then
you received in income from them, the profit is tax free. Once there is equity
in your residential property, you can apply for a home equity loan and use that
money to invest with. There
are also several risks associated with rental properties. First and foremost you
are liability for any injuries which take place on the property. If a visitor
breaks a finger in a door, you have to pay for it. Not only that but you are subject
to lawsuits which will be suing for not just the injury but emotional distress.
This is why it is extremely important that all of your properties meet government
building and living standards. There
are always unexpected expenses. Apartments flood, walls get cracks, and foundations
leak. They are all your responsibility. On top of that you have to deal with tenants.
Ninety percent of your tenants will be great people who mind their own business
but the other 10% will make you want to rip your hair out. Visit
the Global Investment Institute and signup for our free Online Investing For Beginners
E-Course at http://www.Global-Investment-Institute.com Webmasters
or publishers, please feel free to use this article provided this reference is
included and all links remain active. Article
Source: http://EzineArticles.com/?expert=Mika_Hamilton The
information supplied on this page is by a third party and jml Property Services
do not take any responsibility to its accuracy ©jmlpropertyservices 11/06
Own
a Rental Property? 
Back
to Property Articles
See
also: ARLA’s
Response to the Law Commission Report - August 2008 and
The
Law CommissionHousing: Encouraging Responsible Letting 
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