Quick Takeaways

  • You will need to put down a larger down payment compared to buying a house
  • Use rental property software to keep track of income and expenses
  • Start with one property and learn as you go

Source:  How to Invest in Rental Property (NJ.com, Jun. 30, 2024)

Some real estate agents help their clients purchase properties and rent them out to tenants. The property can be any type: single family homes, multifamily residential buildings, retail locations, office buildings, or mixed-use properties. Property owners who serve as landlords must understand their responsibilities to tenants, as well as state and federal legal requirements. The pandemic affected both landlords and tenants across multiple sectors. Rental housing is in high demand, while upheaval in office real estate calls for new approaches from landlords.

Investing in rental real estate requires a commitment to doing the research, understanding your market, and knowing how to identify good investment opportunities. Different property types demand different strategies and specialized knowledge. Many investors have found new opportunities in the recent popularity of single family rentals.

Rental property managers handle maintenance requests, show the property to potential tenants, and collect rent, among other duties that may be specific to particular property types. The pandemic prompted new trends in renter preferences and building amenities. Property managers should keep current on these trends to attract new tenants and provide the best service to existing tenants.

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