SO, YOU WANT TO BE A
LANDLORD?
A
re you dreaming about owning a rental property and making some extra income each month? Before diving into becoming a landlord, there are some things you should know from the advantages and disadvantages to some tips when it comes to buying a rental property.
ADVANTAGES OF OWNING A RENTAL PROPERTY
DISADVANTAGES OF OWNING A RENTAL PROPERTY
If you’re looking to purchase a property for rental and become a landlord, you are likely already aware of some of these advantages, but just in case, some benefits to this include:
As with any investment, there are also some disadvantages to owning a rental property, which are important to consider before you make the leap. These can include:
• Earning additional regularly monthly income
• Responsibility of maintaining the rental property and managing your tenant(s)
• Allows you to continue to build home equity in the property(s) that you rent
• Rental income is taxable and must be included on your income tax. Depending on the value of the extra income, it may push you into a higher tax bracket.
• Ability to deduct certain items from your gross rental income such as mortgage interest, property taxes, insurance, maintenance costs, property management fees and utilities.
• Unexpected expenses and issues may crop up over time. It is ideal to budget 2% of the purchase price of your
