How to Evaluate the Rate of Return on Rental Property

How To Evaluate The Rate Of Return On Rental Property

Being a landlord is a great way to build your wealth and increase your net worth. In fact, Money magazine listed becoming a landlord as one of its highest-rated ways for the average American citizen to become a millionaire. But, how do you calculate a return on rental property? Even after the housing bubble and credit crisis that hit the United States in 2008, real estate is a great way to increase your wealth, save for retirement, and supplement your income with a new stream. So, how do you go about evaluating if rental real estate is right for you? There are a few things that you need to consider when evaluating your options on the return on rental property … Read more

Reader Question – Can I Rent Out Property After Hiring A Property Manager?

This is the next installment in the Reader’s Questions Series, which highlights questions emailed to me by you, the readers of Money Q&A.

Be sure to find out at the end of this article how you can receive a free copy of Dave Ramsey’s book, The Total Money Makeover if I feature your money question on a blog post. If you’re not familiar with Dave Ramsey’s book, you should run right out and get it. It’s one of the top ten best personal finance books you should read. 

Today’s question comes from Jeff who asks about renting his house by himself even after hiring a property manager.

I have been working with a property manager for a few months now to try and find a renter for my home. My wife and I are moving and didn’t want to sell our home. After a few months of trying to find a renter, the property manager still didn’t have the home rented. I started placing my own ads for tenants and finally found someone. Can I still rent out my property to someone after hiring a property management firm?

Rent out property with a property management firmThis question raises a couple of red flags. It makes me wonder if you have chosen the right property manager. There are many questions to ask a property manager before you hire them to ensure that they are a good fit for your family and that you feel comfortable with their work. After all, you will be entrusting them with your most valuable asset, your home.

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