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Should owners act as landlords for their real estate investments?

On Behalf of | Jan 3, 2019 | Real Estate Law |

It is often a wise financial move for individuals to diversify the ways in which they generate income. For many people in New York, across the country and around the world, investing in real estate is one option in which they are interested. While real estate investments can be lucrative, it can also take work.

When investing in real estate, individuals often purchase property that they can then rent to tenants. In these cases, it is important for property owners to decide whether they actually want to be landlords. Holding this position can take a lot of work as tenants call their landlords whenever an issue with the property arises. This means that a person will need to have constant availability no matter the date or time.

Obviously, acting as a landlord may not be feasible for foreign investors. However, that does not mean they should not invest. Instead, they could consider hiring property managers who would act as landlord and otherwise handle the property domestically while the property owners remain out of country. Of course, other issues may come about with rental property, such as having to handle vacancies and not generating a profit until mortgages are paid off, but there are ways to handle those issues as well.

Real estate investments can bring in a seemingly passive income, but a considerable amount of work still goes into handling property. Additionally, property owners will need to make sure that they adhere to the legal aspects of their investments. Fortunately, whether a potential investor lives in New York or simply wants to invest in property in the state, knowledgeable attorneys can help with any real estate transactions.