When looking into becoming a landlord, one of the most common questions people ask is, “is it worth it?” After all, there are plenty of options for investing out there, so what makes real estate so lucrative?
There is no one-size-fits-all approach to investment strategies; however, real estate can provide a profitable and stable investment option—especially in Brevard County and across the Space Coast. In this blog post, we’re discussing three reasons you should invest in a rental property in 2023.
Diversifying your portfolio is good for the long term.
It’s always a good idea to diversify your investments. If you are investing in stocks, you should also consider investing in real estate. While each asset class has its own set of risks and rewards, they all help protect against volatility while providing different growth opportunities. In addition, many people find it easier to sleep at night when they have a diversified portfolio because they know their money is spread across multiple assets that are less likely to perform negatively at the same time. Rental real estate is a tried and true investment strategy that has helped millions of landlords achieve financial freedom.
You can earn passive income from a rental property.
If you’re unfamiliar with the term “passive income,” it refers to making money without actively working for it. For example, if you own a house or apartment building and rent it out to someone else, the renter pays for their home monthly in exchange for living there. This is considered passive income because once your tenant moves into their new place and begins paying rent, the property is essentially working on your behalf of you. Of course, some labor is involved in managing a rental property, so whether it’s truly “passive” income is debatable. However, the benefit still stands — a rental property can make you money while you sleep!
Property values are increasing in Brevard County.
According to Zillow, home values in Brevard County have increased by an average of 20.3% in the past 12 months. This is excellent news for investors looking to purchase a rental property in the area. This outstanding appreciation is due to a number of factors, including job growth and the Space Coast’s high quality of life. Purchasing a rental property in Brevard County can provide landlords with a regular income while also appreciating over the long term.
Owning a rental property in Brevard County can be lucrative, but you should research and prepare first!
As discussed, rental property can be a great way to earn passive income and as a source of portfolio diversification. However, it’s important that you do your due diligence and research before purchasing any investment property. To make sure you’re prepared for the challenges of being a landlord, it’s crucial that you have systems in place for a successful rental operation. From finding the best rental property to sourcing tenants and handling repairs and maintenance, there is a lot to consider when becoming a landlord. Fortunately, the experts at Rent In Brevard Property management are here to help you manage your rental properties and scale your business. Our licensed property managers can help you create a strategic property management plan to protect and elevate your rental investments while ensuring you maximize profitability. Contact us today to learn more about our property management services.