For many rental property owners, the key goal for purchasing properties is to receive a steady, ongoing income from the tenants. But, just like any other type of investment, knowing whether or not your property is growing in value is also key.
Unlike the price of a stock or mutual fund, ascertaining the approximate value of real property can require a bit of research. In doing so, it will require that you take into consideration both the income that the property is generating, along with an estimate of what you could realistically sell it for.
In this case, you should ideally determine the property’s gross rental yield, along with its price to earnings valuation. Then, compare these figures to other properties that are in the home’s vicinity.
In terms of the property’s price appreciation, it is important to keep in mind that real estate prices will typically rise or fall with inflation, plus or minus roughly 2%. In this case, for instance, if the most recent inflation figure is 2%, then you can generally anticipate that the property appreciated somewhere between 0% and 4% for that year.
Whether you own one investment unit or one hundred, managing tenants and property maintenance can be somewhat time consuming. This is particularly the case if you have other business and / or personal avenues that you need to attend to.
That being the case, it could be time to consider hiring a property manager. That way, you can essentially hand off all of the duties that take up the bulk of your time, while still receiving a regular income stream.
Want more details on how you can benefit by working in conjunction with a professional, experienced property management team in Orlando and the surrounding Central Florida area? Give us a call today.