Triangle Law Group
We make legal services affordable.

Our consultations are only $99 for the first 30 minutes!

919-301-0716

What should you consider before buying a rental property?

If you are looking for a way to make some extra income, you may consider buying an investment property. While there may be many potential benefits of owning a rental property, there are also several possible challenges. Before you purchase a rental property in North Carolina, it is essential to understand the relevant practical and financial aspects of being a landlord.

According to CBS News, there are several essential considerations to ponder before becoming a landlord. Managing a rental property may affect your lifestyle and schedule in numerous ways. For example, you may have a dedicate a significant portion of your free time to maintaining your property, interacting with your tenants, and finding new renters. Collecting rent may require you to set up accounts with online payment providers or make trips to your bank to deposit checks. You may also have to understand and follow specific state and federal guidelines for landlords.

Before you invest a large portion of your financial resources in a rental property, it is a good idea to figure out your budget. Many financial experts recommend following the "one percent rule." This rule may help you determine if a rental property will be a good financial investment. Ideally, you should charge rent that is equal to at least 1% of the property's purchase price (plus any required repairs). If the market in your area does not support rental rates at this level, you may want to find a different location. Property taxes may also affect your financial calculations. You may have to pay a higher rate on your investment property than you do on your primary residence.

This information about rental properties is intended for educational purposes and should not be interpreted as legal advice.

No Comments

Leave a comment
Comment Information

Learn How We Can Help

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Email Us For A Response
Triangle Law Group

Triangle Law Group
3130 Fairhill Drive, Ste. 104
Raleigh, NC 27612

Toll Free: 877-427-1252
Phone: 919-301-0716
Phone: 919-848-1110
Phone: 919-301-0716
Fax: 919-848-1699
Map & Directions