Marble has raised a $2M seed round! Read about it on Geekwire.
Let's face it: rentals are a great way to make some extra money. But there is more to single-family rentals than meets the eye. Before you jump into landlording, let's take a look at some pros and cons so you can decide if single-family rentals are suitable for you.
1) You can make good money – Let's start with the obvious: single-family rentals bring serious cash flow. As long as your tenant pays their rent on time, this could be an incredibly lucrative venture and provide reliable income over time.
2) Tax benefits – Rental properties often come with hefty tax deductions that self-managing landlords can take advantage of. From mortgage interest to property repairs, you can deduct many of your expenses from the rental income and save yourself some cash come tax season.
3) You're in control – As a landlord, you get to call the shots regarding tenant selection, rent amount, and amenities offered. Additionally, the freedom to pick who rents from you provides comfort in knowing that your property is in capable hands.
4) Equity growth – Owning rentals means that your tenants are helping you build equity each month. Over time this unearned income can increase significantly and add up quickly—providing yet another great source of revenue down the road.
1) Maintenance costs– With rentals come maintenance—and often, it's a hefty price tag. From plumbing repairs to painting the walls, You might find yourself spending more money than you anticipated.
2) Risk of vacancy – With rentals comes the risk of vacancies. Even if your property is great and at a desirable location, there's no guarantee that it will always be filled with tenants.
3) Tenant trouble – As a landlord, you're responsible for everything from tenant complaints to disputes over rent payments. This can often make landlords uncomfortable when trying to handle their renters' grievances.
4) Time commitment – Managing rentals can take up a lot of time and effort. From showing the property to potential tenants to ensuring all repairs are taken care of, rentals take up a considerable amount of time that you may not have or be willing to give.
The bottom line is that rentals can be a great way to make money, but they also come with some serious drawbacks. Before investing in rentals, make sure you know what you're getting into and whether it's right for you.
Create your account for free and a Marble representative will walk you through everything.