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