If you are planning to sell your property, wait before you do so. Many homeowners plan to sell their property that is not in use or before shifting to a new one. What they fail to understand is that they can put their property on rent and earn profits. There are various advantages and disadvantages of owning a rental property in Fort McMurray. Here are some pros and cons:
Pros of Owning a Rental Property
Additional Recurring Income
Along with your main income, giving your additional property on rent can give the advantage of earning more income. This can be your alternate, passive income that you can use for a number of purposes. The rent of your property can act as the return value of the purchase price that you invested.
Easy Payment of Mortgage and Insurances
The rent of your property can help you pay the mortgages, loans, property taxes, insurance, maintenance, and for the repairs. This can burn a smaller hole in your pockets in the long run.
Passive Income During Tough Days
The rent of your rental property can provide income during an emergency situation or if you are physically unable to work. You won’t face a crisis if you save your additional income for such situations.
Owning a rental property has tax benefits too. The income from renting the property is taxable only to the extent that the income exceeds the expenses from the mortgage and taxes.
Cons of Owning a Rental Property
Unexpected Repair Expenses
As the owner, you have to take care of the repair and maintenance of the rental property. The need of minor or major repairs can arise anytime and you should be ready to bear the costs at that time.
Additional Repair and Maintenance Costs
The repair and maintenance costs of rental properties are higher than those of owned properties as tenants don’t treat the property as their own.
Empty Property for Long
Even after marketing your rental property effectively, you may not get good tenants for months. In such a case, even if your rental property isn’t occupied, you’ll still have to pay the taxes and other costs. You will have to take care of the expenses as well as the property until you get don’t get tenants.
Hard Time Dealing with Tenants
If you get annoying or undesirable tenants, you can face tough time dealing with them. These tenants can damage your property and even refuse to follow the rules Also, asking for the rent and maintaining good relations with them can be extremely difficult.
Understand that over the years, the value of your property will certainly increase. This means that the benefits will increase as well. If you are planning to buy a rental property or rent your existing one, give us a call. We specialize in buying and selling homes, and all the other Fort McMurray real estate services.