Many Americans rent their homes instead of buying them — in fact, more are doing so than at any other point in the past half-century. The math is increasingly on their side, as those without the means to acquire big real estate holdings may be better off renting than they would be buying, particularly as young professionals. But, for those who can afford to invest in real estate, the reverse is also true. It’s a great time to buy and rent a property because there are so many renters out there looking for places.
Of course, owning a rental property isn’t just easy money. If that were the case, everyone would be in the market for a new income property. The reality, of course, is far more complex. Rental properties offer their owners the chance to make big profits, but they also come with risks.
The key to successfully investing in a rental property is to manage your risk and make your property as efficient and as profitable as possible. In order to do that, though, you’ll need to familiarize yourself with the risks that face your rental property. Here are a few to focus on along with …