Are Rental Properties a Good Option in the Year 2021?

Are Rental Properties a Good Option in the Year 2021? post thumbnail image

Are you planning to invest in rental properties? Here in this article, we shall discuss if the rental properties are a good investment in the year 2021 or not.

Table of contents

  1. Are rental properties a good investment?
  2. How much profit should you make on a rental property?
  3. Do rental properties make money?
  4. What are the benefits of owning a rental property?
  5. Conclusion

Are Rental Properties Good Investment?

Rental properties are an excellent choice in the real estate market because these properties provide a good income. Where there are pros sometimes you have to face the cons as well. The rental properties provide you profit in a double way.

On one, you earn easy cash in terms of rent. On the other hand, the property rate increases over time. But the major issue of the rental property is that it is very difficult to keep it busy round the year. The tenants can leave the property at any stage. You have to find another for the property and it is not that easy.

If there is no tenant as such the rental property becomes a headache for the landlord. The reason behind it is that empty property can become a nightmare because you have to pay utility bills and property tax regularly.

How Much Profit Should You Make on a Rental Property?

The profits on the rental properties depend on the area where they are located. It means that, for example, a house for rent located in Karachi, Lahore and Islamabad will cost different as compared to the one located in some unknown area.

Moreover, according to the 1% rule, if your property provides you with 1% of the total rate of the property, it is good to move forward with the property investment. If you have more than one properties in some busy area with high demand, you can earn a handsome amount for a better living.

Do Rental Properties Make Money?

As we have hinted above that the number of properties plus where the properties are located. If the properties are in an urban area, the profit margin will be higher as compared to the properties located in suburban areas.

If the cash flow is reasonable, it is good to move forward with the property business. For that reason, you need to be very careful before you invest in any kind of property. You need to be careful about the area where the property is located. Similarly, you should know about the available amenities in the area.

What Are the Benefits of Owning a Rental Property?

There are several benefits of owning rental properties. For example, you need not be worried about damages. The reason behind it is that you have to maintain the house for rent only once. When you have a tenant with your property, they will be responsible for the damages they will make with the property.


To conclude in a nutshell, we can say that rental properties are a great investment when you are a social person. It means that being social, your property will remain busy with the tenants. All you need is to keep in contact with real estate agents and other social personalities in your area.  

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