Having a rental property apart from your home is something everyone considers investing in. The whole idea of having more money making assets is enthralling. But owning a property in Calgary and letting it out on rent isn’t easy. Before you go ahead and spend your savings on a rental property, here are a few pros and cons you should be aware of.
Pros
A Steady Income
The major benefit of having a rental property is the income you receive from the tenants on a monthly basis. Apart from the job you have, the rent money received is an added steady income, which you get without doing much. If you own more than one property, the rent money accumulated can amount to a good income. The rent money also helps you to pay the mortgage on the house without removing anything from your own pocket.
Increase In Realty Rates
Real estate is one investment where the value of your property will only increase. Owning a property in a decent neighborhood ensures that the property rate will increase with time. This automatically increases your total asset value.Aids Tax Deductions
Having a rental property helps you in tax deduction. You can deduct certain expenses such as mortgage interest, property tax, insurance, from your total income. This will reduce the taxes you owe to the government.
Cons
Unexpected Expenses
With a rental property comes the responsibility of maintenance. Though your tenants may be keeping your property well maintained, certain issues do come up from time to time. Issues such as damaged roof, defective plumbing, etc. are something that calls for the landlord’s attention. These expenses are usually incurred by the landlords.
Bad Tenants
For a tenant, taking complete in-depth care of the house is not a necessity as it is not their permanent residence. Such tenants often leave the place damaged or unclean when they leave. Also, there is a risk of tenants not paying rent for a long period of time, thereby stopping your cash flow. Some tenants are plain rude and do not cooperate. You need to filter your search to avoid getting stuck with a bad tenant.
Long Duration Of Vacancy
There are times when you may find it difficult to get a tenant for your property. This leaves your property empty for a considerable amount of time. Though there are no occupants, you still have to maintain the house, which costs you from your pocket. The mortgage would also be going out of your pocket.
Having a rental property will definitely boost your income. What matters is how you work on the factors that can negatively affect you. When owning a property in Calgary and putting it on rent, consider taking the assistance of a seasoned estate agent. An agent would ensure that the contract drawn does not put you on the receiving end of more expenses and that the house has good tenants at all times.
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Having a rental property will definitely boost your income. What matters is how you work on the factors that can negatively affect you. When owning a property in Calgary and putting it on rent, consider taking the assistance of a seasoned estate agent. An agent would ensure that the contract drawn does not put you on the receiving end of more expenses and that the house has good tenants at all times.
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