Why Become a Landlord?

There are perks in becoming a landlord and getting yourself into the property renting business. If you have a property that you want to sell, consider having it leased instead. Maximizing the revenue potential of your property is not only limited to selling it at a high price. As a matter of fact, having it for lease gives you the leverage of retaining your property while benefiting from it.

Continuous Revenue

Once leased, the property can help in creating a regular flow of income for you. Typically, a leasing contract should not be less than six months, and would usually last for a year or more. Within that time period, you can expect payments to be made for your property instead of leaving it lying around or sold for a much lesser price than what you can earn in the long run. However, you should also consider how much of the payment will go to maintenance costs, tax fees and other services that you have to employ in order to keep the business going. Also look into the possibility of having transition periods between tenants. Depending on the location and price, tenants may find your property a good place especially if it is well-maintained. You may also advertise on the classified ads.

Tax Benefits

While growing your business, managing finances related to your property may prove to be difficult but having a closer look into it will greatly benefit you. Due to the interest made on a mortgage, tax deductions will be applied to your annual property tax. Also include the depreciation rate while filing for a tax deduction. You may have this filed fro 27 years from the time of purchase. Put together, that is a pretty large sum. If you think that maintenance cost only takes a chunk of your revenues, it can also help take out a piece of your tax. Other benefits may include having a home office or travel expenses. Ask your lawyer or tax agent for a more detailed guide on these.

Flexibility

There are landlords who are, apart from being landlords have daytime or other part-time jobs. Eventually, this develops as a full-time job with the increase of properties. This gives you the leverage to control your own time and follow a certain schedule that is more suitable to your other day-to-day activities. You can have more time with your family and spend time doing your hobbies. A lot of people get a kick from not having a boss and actually living the life that they want, since a fixed schedule is not applicable. Over time, this should develop in hiring employees that would share the same vision as yours.

Getting into the Real Estate Business requires a great deal of responsibility and self-discipline. If you are a driven individual wanting to gain financial freedom and flexibility in your life, look towards being a landlord and discover the possibilities.

For more information on real estate investing go to http://www.annettapowellblog.com

Wishing you much success,

Annetta Powell

Queen of Real Estate