Being a landlord takes good perseverance regarding communicating with people who are in need of a place to stay. Landlords are known to be very accommodating to keep the place rented without having it to be vacant at all times. Being a landlord means you are also contributing to the economy because you are as well paying income tax and even property tax. The higher the rent of property, the more there is money to be transferred towards the poor people. That’s how a landlord creates a great impact to the community.
An income property is a type of property developed for an owner to gain or earn an income. You must understand that there are advantages of being a landlord because you are investing in real estate. At the same time, there are also risk factors that you must foresee. Here are the following reasons why investing an income property is very lucrative.
- Being the boss of your own investment property as soon as you have decided to invest an income property, you have become the boss of your own wealth and this includes the type of property that you want to invest in, the amount or budget that you wish to start investing with, how much you will be charging and the types of tenants that you want to rent your property. As a whole, how are you going to manage and maintain the entire business?
- Rental Income became your pocket money- after a year or so, you are finally beginning to earn an income out of the rental property that you have invested since the beginning of time. This also depends on how much you’re charging for every tenant that is occupying your property. Supposing you have charged one individual with at the particular space that is occupied with an amount that you take 5% each on the maintenance and vacancy costs. Therefore, you will be putting it as well to the bank in paying a mortgage leading you to an extra amount that you have earned out from the rental business.
- A write off for the income of the property- if you are a rental property owner, it is basic that you will have a huge deduction when it comes to tax. By doing so, you can have a write off by using a credit card to buy a property, or you can have a mortgage interest. You can also use the write off for the purpose of insurance, travel expenses, maintenance and property taxes.