The return on investment is very good because of a tight rental market caused by the housing crisis. Rents have increased while home prices have dropped. With that being said, Single Family Homes are the best way to go because they are easy to rent and you can pre-screen for the absolute best tenants. Good tenants are the key to avoiding problems.
Have you ever noticed how apartment complexes have to work hard to rent their apartments? Meanwhile, most single family homes are rented without much effort. Homes tend to attract more stable tenants that are older and have more stable, established jobs.
Here's how to avoid problems with a rental property. Before agreeing to rent to a prospective tenant, ask to look at their financials. Banks ask for copies of tax returns, bank statements and pay stubs before approving a loan. I don't think a tax return is necessary. But you can get a much better idea of whether or not someone can pay you when you have copies of bank statements, pay stubs or both. It will be very hard to get this from someone renting an apartment. But there are much less homes for rent and more people looking to rent a home. That extra demand will allow you to request that information.
Have you ever noticed how apartment complexes have to work hard to rent their apartments? Meanwhile, most single family homes are rented without much effort. Homes tend to attract more stable tenants that are older and have more stable, established jobs.
Here's how to avoid problems with a rental property. Before agreeing to rent to a prospective tenant, ask to look at their financials. Banks ask for copies of tax returns, bank statements and pay stubs before approving a loan. I don't think a tax return is necessary. But you can get a much better idea of whether or not someone can pay you when you have copies of bank statements, pay stubs or both. It will be very hard to get this from someone renting an apartment. But there are much less homes for rent and more people looking to rent a home. That extra demand will allow you to request that information.
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