And the whole time you re collecting rent from your tenants, you re holding onto a property that has a good chance of increasing in value. Not only that, but there are tax benefits to being a landlord. However, there are substantial drawbacks to owning income property too, and those repairs we just talked about are not the worst of it. You have to find the right tenants and hope they don t trash the place. But you decide.
Some former landlords swear they ll never do it again.
Others find the business of renting property highly lucrative and even fun. Just be sure you know what you re getting into. Take the time to understand the real estate laws in your state, become familiar with the real estate rental market in your area, and be prepared to devote considerable time and attention to the endeavor. Unlike stocks, where somebody else is running the company you are investing in, real estate is a high-maintenance investment and we mean that quite literally. A REIT works like a mutual fund, where investors pool their money and professional portfolio managers buy a collection of real estate investments.