Rental Holdings

HoldingsThe term rental holdings refers to the practice of purchasing properties which are then “held” and rented out for a profit.

Rental holdings are a great option for individuals who are seeking a regular income from their investment properties. Once the cost of the property is paid off, the rental fees are nearly all pure profit. Unlike wholesaling or flipping, rental holdings bring in a steady stream of income rather than a large lump sum, making this investment option ideal for retirees, for instance.

Property management is one point to consider for rental holdings. Tenants will turn to you, the property owner, whenever there’s a problem at the home or commercial property. Some property owners will choose to hire a property management company to tend to these matters, while others prefer to handle property management on their own.

There’s also the matter of finding and screening prospective tenants. Some property management firms will tend to this, while others may turn to a REALTOR who specializes in rentals. Others still will choose to handle the process on their own.

There is some risk associated with rental holdings, but if the property is occupied by a tenant, the risk of losing money is minimal. This is why it’s important to purchase a rental property in an area where the rental market is strong. Arizona is a prime example of a thriving rental real estate market in the U.S.

The other financial risks are incidental, such as property damage caused by tenants or nature, or an unexpected repair, but insurance can be used to negate a large portion of this risk.

If you’re ready to get involved in property investment and rental holdings in Arizona, turn to Karen Abinet and True Wealth Holdings LLC. You’re invited to complete an investor profile form to get started.