Investment in property has always been a popular way to grow wealth. There is a reason for the saying, “As safe as houses.” The down side to real estate investment does not lie in the investment itself but in the administration of rentals and in dealing with the actual tenants. In theory, a rental agreement is fairly simple – you both sign a lease and the tenant pays over the money every month.
In reality, however, things are slightly more complex – there are legal issues to comply with and collecting the money from tenants can prove to be bothersome. In addition there are issues regarding the maintenance of the property and repairs that may need to be conducted. It can also be difficult to find the ideal tenants from the outset – as a private person; you do not have access to the credit checks, etc. that a professional real estate management company would have. Read more