It seems like everyone is jumping on the real estate investment bandwagon these days, with the rental market becoming increasingly competitive and allowing landlords to charge ever increasing prices. While becoming a landlord can be a wonderful way to supplement your income, it’s not without its fair share of challenges, contrary to what the popular shows on HGTV might have made you believe. If you’re considering an investment in rental properties, take these factors into mind first.

1. The Amount of Responsibility

Deciding to become a landlord is no small endeavor, and taking on the responsibility that comes along with renting out personal property can be overwhelming if you’re not prepared. You’re responsible for more than just filling the apartment. Maintenance and repairs will fall on your shoulders, you’ll have to remain (to a certain degree) available to your tenants at all hours of the day and night, and you’ll also be opening yourself up to a host of liabilities should anything go wrong. If this sounds like too much responsibility or too time consuming on top of your other responsibilities, you may want to consider hiring a property manager to handle the daily ins and outs of the process for you. They will place tenants, deal with evictions, and remain up to date on all the hairy legalities of the process, but this route is not without its downside—most property managers require at least 10 percent of your rental income each month as payment.

2. Your Income Potential

This is an investment, so make sure the potentiality of your income is worth the purchase price. How much can you actually charge to make you a competitive option for searching renters? Do you have the funds to cover your expenses, both in the rental and personally, should you have a prolonged vacancy for whatever reason? You’ll have to worry about mortgage payments, tax increases, and more, along with repair expenses that can become more costly than you might imagine. Make sure the income you’ll have from your property will cover all this and more if you want to turn a profit.

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