How Do Landlords Make Money?


When a landlord buys a house that they intend to rent out it is with the expectation that they will make a profit off of it. A lot goes into calculating just how to make a profit though. Firstly, enough rent must be charged to cover the expenses, and then, after that, anything extra will be income to the landlord. Rarely will a landlord use their own money to buy a house outright, even if they can afford it. Many times they will settle for a mortgage, charge enough rent to cover these bills and the interest, and allow the tenants that move through the property to pay for it. A landlord often finds tax breaks when they own a rental property, using these to help save. Above all, you want to keep an eye on the market. Property rates go up and down as time moves on, but by keeping an eye on it, this can indicate when the best times to sell or buy are.




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POSTED December 02 2013 2:58 PM
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