In today’s harsh economic landscape, a sound strategy is to rent out a room, an entire apartment, a house, office, or even a cardboard box in some circles. Becoming a landlord can be helpful in creating some financial flexibility, but it can be a difficult concept at times if you’re just starting out.
Looking for a short-term investment strategy? Companies like Air BnB are great way to make a few extra bucks on the side. If you have a spare room in a happening city, and some unclaimed Mid-century Furniture available, charge somebody a few bucks to crash after a long day of travel. Conversely, you can find a temporary spot to crash when you’re on vacation or traveling for work.
The site takes a small cut, but you can still make a decent day’s pay. Air BnB can be a great alternative to a hotel, or a hostile hostel.
Housing more permanent guests is going to take a more intricate plan. You might need a permit for the extra property or side apartment(if you want to do it legally), and make rental prices feasible for your prospective apartment hunters without gouging them. Make sure all appliances are functional, avoid fire hazards and for heaven’s sake...don’t be a slumlord.
You may also want to wait until a time when interest rates on properties are on the lower end, to avoid paying high taxes on the extra income. If you’re paying mortgages or have other expenses, plan accordingly.
A Real Life Game of Monopoly
If you’re more advanced in the real estate game, you may want to try your hand at buying up some business properties. Consider a person like former NBA-superstar Shaquille O’ Neal. He owns 155 Five Guys locations.
That kind of investment portfolio is certainly not available for your average person without 4 championship rings. But, if you have the resources, you can look into recession-proof ideas like laundromats, apartment buildings, or professional buildings to almost guarantee yourself a solid return. Just make sure all the properties have the proper Modern Lighting to attract the most sophisticated and wealthy seekers.
Get a Team of Advisors
Once your properties are up and running, and you're enjoying your lobster dinners, it’s time to start thinking about keeping everything in order. Hiring an accountant or financial advisor to handle the appropriations of the extra income is a good place to start. You’ll also need a counselor well versed in property law, in case of emergency or a disgruntled tenant.
Once you have all the bases covered, then you’re on your way to becoming the next Uncle Pennybags.
Source: Emily Osmond