| Is it possible to make money investing in real estate? | | | | With a month to month lease you are only required to |
| You see all of those ads for courses that cost | | | | give a tenant one month of notice to have them move. |
| hundreds of dollars, and claim to teach you how to | | | | Certain groups of people, like college students and |
| make money by investing in real estate. The truth is | | | | workers who may be relocated among others, |
| that some research and knowledge can save you | | | | actually prefer a short term month to month lease, and |
| hundreds, and even thousands, when you invest in | | | | these groups will usually not sign an agreement for an |
| rental property. If you have some money to invest, | | | | extended time. |
| rental property is a great way to turn your money into | | | | A short month to month lease can actually save you |
| a lifetime of income. | | | | money in your real estate investing. This is because it |
| There are many advantages to investing in rental | | | | is easier and quicker to raise the rent if your expenses |
| property, but there are a few disadvantages as well. | | | | for upkeep and other costs go up. With a longer lease, |
| One advantage is that it is a long term investment that | | | | you can not raise the rent for that length of time, even |
| in the past has given an annual rate of return at | | | | if your costs go up. With a month to month lease, if |
| around nine or ten percent. This is comparable to the | | | | your costs go up, you only have to give the tenant one |
| stock market, but with significantly less risk. The capital | | | | month of notice before you can charge them more. |
| gains tax on any profit you make from your rental | | | | In summary, it is sometimes better to have a month to |
| property is twenty eight percent, which is less than | | | | month lease with your rental real estate investment. |
| most investment or employment income. One of the | | | | The benefits far outweigh the costs, and certain good |
| disadvantages of investing in rental property is the | | | | tenants would prefer the shorter terms. The short time |
| cost of tenant repairs, and another is vacancies. | | | | length allows you to get any undesirable or non paying |
| There are some tips to follow to maximize the return | | | | tenants out a lot faster, so good tenants can be found |
| on your rental property investment. The first is to | | | | and moved in. This can save you quite a bit of money, |
| consider a month to month lease for your rental | | | | repairs, and hassles. You invested in real estate to |
| property. Most landlords prefer to rent for a fixed | | | | protect your money and make it grow, and a shorter |
| period of time, like six months or one year. The | | | | lease period will work harder for your money. |
| advantages are less vacancy and more stability. | | | | Copyright © 2007 Joel Teo. All rights reserved. |
| There are some disadvantages to having a longer | | | | (You may publish this article in its entirety with the |
| lease time as well. One is that it takes much longer to | | | | following author's information with live links only. |
| get an unwanted tenant out due to the legal system. | | | | |