Why You Should Invest in an Apartment

 

Why You Should Invest in an Apartment

The idea of investing in an apartment may seem strange to some, since to many people, an apartment is a building that can never offer any return.  Still, because of how condos and other small housing units work, if you were to purchase a building you could rent out: you would make a high income and have your money back sooner than later.

If investments are new to you and you want to leap, here's why apartments are the place to start.

Fewer Tennants

The more tenants you have as a landlord, the more problems you could have. On the other hand, owning a small apartment building with fewer than six units could result in you maintaining it with ease.  These units can call for help when needed, and you can answer because there are few enough tenants that you won't be overwhelmed by work orders.  Fewer tenants also mean there will be fewer chances at missed or failed checks that could ruin your business.

More Controlled Space

When renting out homes to people, there are far more things that could go wrong.  They could kill the grass, ruin the curb appeal, and take away any chance at future tenants or sales.  In apartments, however, it's far more affordable to be able to replace and repair items.  Tenants can't ruin the curb appeal, and you can fix things faster.

Housing Is Always Needed

As long as there are people, there will be a need for housing.  This doesn't mean that you'll have to be a landlord forever, just that you can make an investment in some St. Albert homes for sale and move forward with creating a space for rent without having to worry about not finding tenants.  There will always be renters interested in your property.  

This can also be important to remember if you have trouble with your current tenants.  The fact that they can easily be replaced if they’re damaging property or refusing to pay can free you to make business decisions that won’t be based on the fear of having empty units.  

This doesn’t mean that you should evict people for small offenses; that's inhumane, just that if something troubling happens, you can rest assured that you won't have the property foreclosed on without tenants.

You Won't Pay the Mortgage.

As bizarre as it sounds, the property owners don't pay the mortgage: the renters do.  This means that by providing them a space to live in and ensuring it's safe and comfortable for them, you'll have a property in a few years that's almost entirely profitable.  This can be a great nest egg for anyone who wants to retire or could allow you to pay for your child's college education if you have kids.

Being a landlord is a lot of work and stress, and a lot is riding on the hope that your tenants will pay on time and not destroy the buildings you're allowing them to live in. However, communication, patience, and a thoughtful business plan will pull you ahead of the pack!