How do landlords make a profit? Learn about it here.
Landlords will always be necessary; for some people, renting a home or business space is better than owning. If you are interested in becoming a landlord, there is a lot to learn about before you get started, one of the most important things being profit. How do landlords make money?
The Simplest Explanation
The most basic understanding of how to be a landlord is to buy a property and rent or lease it out to tenants. While you have paid the down payment, the tenants’ rent covers more than the monthly mortgage payment, so that you can get an income. Many consider renting out commercial or residential property to be a form of passive income.
Little-Discussed Expenses
However, a landlord is never truly hands-off with property management; it is not exactly a passive income, and there are other monthly expenses to account for when charging tenants enough for you to have a profit. You will also need to charge enough to cover routine maintenance costs, insurance, taxes, and more. You will also need to account for maintaining tenant communication and payments. If you hire a property manager to help with finances, tenants, property maintenance, and marketing, then you will also have to pay the property manager a percentage.
Unpredictable Variables
As a landlord, you should also have savings to pay for emergency property repairs, just in case. Many other factors can affect how your finances fare as a landlord, such as the local economy, the local housing market, environmental events, and much more. Outside factors can influence whether you make more or less as a landlord.
How Can Clagett Enterprises Help?
If you want to get into real estate investing, it’s best to have a professional, helpful guide. If you are looking in Frederick, Maryland, Clagett Enterprises can be the real estate guide you need to succeed. We specialize in residential and commercial sales and property management services. We have also managed properties for historic and medical buildings. For more tips on real estate sales and investing, please explore our blog and contact us for more information!
Trust the Professionals at Clagett Enterprises for Your Realty Needs
If you’re looking for an experienced property management company, the perfect realtor for your property, or a professional to assist you during your purchase of any home, you can rely on Clagett Enterprises. Clagett Enterprises is a full-service real estate company with almost 30 years of experience in the Frederick and Western Maryland area. For assistance with commercial sales, leasing, management, and development and consulting, contact us online or give us a call at 301-665-6009. To meet our team and see some of our beautiful homes, follow us on Facebook and Linkedin.