Hedging income from income-producing properties Real estate investors invest for two main reasons, an increase…

Hedging revenue from rental properties

Real estate investors invest for two main reasons, value added and monthly passive income.?

I want to focus on passive income today,
It can reduce or eliminate the dependency on wages.

When it comes to rental income, understanding and taking steps,
To maximize the certainty of monthly rentals.

Here are a few points that hurt your monthly rental, and explain how you can minimize or eliminate the injury:

1. Vacant property between tenant and tenant - investment in central locations (Tel Aviv, London, Toronto, Manhattan… ..)
Allow the investor to enjoy a zero period of time that the property is not leased, here the rental return will be lower,
But getting a rental is a sure thing.

2. Physical condition and quality of construction of the property -? Ensuring an investment property overhaul if necessary at the time of purchase,
And maintaining maintenance over the years will reduce the brakes.
US investors in wooden construction, for example, are exposed to higher maintenance costs and undercuts,
They can delete a few months' income, so we recommend limiting them
Investment in these assets, up to 30% of the total assets of the portfolio portfolio.

Excess supply of properties in a particular market - it is possible to focus on properties in old areas, where the increase in supply is limited,
(Tel Aviv, Bat Yam, Ramat Gan, Givatayim ……), spread the investments across a number of different markets.
Proper timing allows the investor to focus on long-term renters,
By renting lower than the market rent,
And good service, so even when there is a large supply of assets,
The tenant will choose to continue with the landlord with whom he is satisfied.

4. Target audience of potential tenants - this parameter has a direct impact on the level of risk of the investment,?
And the certainty of getting a monthly rental, so any investment should be considered with regard to the type of renters to whom the property is applying.

5. Process and costs of evicting a tenant - In any market in which you invest, you must understand this issue, and take care of an emergency fund accordingly.

6. Real rent - The rent is dynamic and is affected by the supply of assets, unemployment rates, the percentage change in wages,
Transformation of a particular area, a change in market trend, so the property owner should be rallying in views, and his demand when renting the property.

7. Type of property - Not every residential property is suitable for investment, everywhere, it must be understood which type of property has a high demand for rent.

8. Investments in niche assets - assets such as student housing,
Offices …… Exposure to growth in supply is high, and will significantly hurt occupancy rates,
It is therefore advisable to limit exposure to such investments as part of the rental portfolio.

9. Large Annual Payments - In the U.S. the payment of city taxes,
Can offset a month and even two months of rent,
If there are several assets, this is a large expense that drains over the same period,?
In England, home payments are also high and sometimes drain at the beginning of the year.
Therefore, it is necessary to dedicate part of the rent each month to an emergency fund,
You will pay these expenses in due course.

In order to generate income from rental properties, we recommend that you build a balanced and balanced portfolio of assets, thanks to a majority of assets.
Solid in the portfolio, the net income must be higher than the monthly living costs, in order to fund it
Also in various cases and income tax payment.

Asset portfolio size should be large enough,? So that monthly income from rentals,
Even if there are no rentals from 2 or 3 properties in a particular month.

In addition, liquid capital aside as an emergency fund to deal with various gaps,
And, at a later age, a monthly pension and Social Security annuity, in addition to rentals,
Will increase the certainty of monthly income at retirement.?

Properly built asset portfolio will give great certainty for monthly income.

great weekend,

Roni & Adi