Landlords Corner

The Rental Market Is Expanding - Learn Why

Renting is the Right Solution for Consumers Reluctant to Buy Homes

A lifetime goal that many U.S. citizens try to achieve is home ownership. While both renting and buying have their own unique benefits, for many people renting does have an upper edge when the economy is poor. There are many benefits to renting for consumers who are reluctant of buying homes.

While buying a home may be beneficial for consumers over a long period, for new consumers who aren't unsure, renting is the best option. There are many examples that show how renting can save real estate investors a considerable amount of money. Whether to rent or buy your own house is a choice that is entirely personal. Before making a swift decision, make sure to review the details and make the financial decision that best fits you and your family.

Here is a look at the top benefits that attracts people to the renting realm.

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Things to know before becoming a landlord.

Planning to Becoming a Landlord? Keep These Important Things in Mind

While some real estate investors buy and flip homes for selling purposes, others are keen in benefiting from long-term appreciation combined with the cash flow coming from tenants.

As an investor, you’ll have rent from tenants that'll help you cover your mortgage payments and other costs, and you can enjoy tax benefits too. And, ultimately, you can have rental income without the mortgage cost. If you are planning to becoming a landlord, here are some important things you need to know:

Read more: Things to know before becoming a landlord.

What to Do When Rental Property's Market Value is Lower than Intrinsic Value

Higher Intrinsic Value & Lower Market Value

Finding lower appraised values on their rental portfolios than what they believe their properties are worth can make today's housing market really frustrating for real estate investors.

Market value is the price that a property would sell for in a specific period, and it can differ hugely from the value which can be counted as the value of the property’s cash flow to an owner, also known as the property's intrinsic value.

Under a cash-flow scheme, the intrinsic value of a property might be much greater than the market value. The conditions in the real world, such as recessions and housing bubbles, can influence market value. Intrinsic value is the value of the property in a perfect world, in a stable market.

Read more: What to Do When Rental Property's Market Value is Lower than Intrinsic Value