Pros of Rental Investment Properties

Steady Income

Renting out your investment property means a stable and steady stream of income from tenants. This ensures you have enough money to pay off the mortgage for the property, costs to cover regular maintenance and extra cash for profit.

Appreciating Property

Real estate properties are an asset that appreciates over time. There are long term financial benefits to having and investment property - whether you rent it out or have it as your primary place of residence. That means, in a few years the value of your property may increase in accordance to market conditions.

Control Over Investment

You have all the control! With your own rental investment property, you have control over your tenants, the amount of rent you charge, property management and property improvements. By having control, you have the ability to optimise profits and your investment in the short and long run.

Cons of Rental Investment Properties

Market Fluctuations and Risk Tolerance

The rental and property market is unpredictable, volatile and ever-changing. There will be random periods of time where the value of your property may depreciate, interests rates on loans may increase and local competition. Because of this, investment property owners must have strategic plans for any economic or financial setbacks and rely on strategic market research and analysis.

Vacancy and Tenant-Related Risks

Depending on the demands of the market in your local area, there may be long periods of vacancy where you won't generate rental income. Finding an investment property that supplies to the demand of the area, whether it be with creating value through having amenities, renovations or location - it will greatly impact who would want to live in your property.

There may also be risks in regards to tenants that may not pay their rent on time or create property damage. With such risks, come lengthy and expensive legal processes.