The Definition of Rental Real Estate
Rental real estate is defined as any property in which the owner receives payment by another for use or occupation of the property. This payment is referred to as rental income.
Other People Are Reading
-
Types
-
Rental real estate can be residential or commercial. Residential real estate includes properties such as apartments, condos and houses. Commercial real estate includes office buildings, warehouses and storage facilities.
Landlord
-
A person who rents his property to another is referred to as a landlord. Landlords are typically responsible for the repairs and maintenance of the rental real estate.
-
Tenant
-
A tenant is a person who rents property. Tenants typically pay a monthly fee for the use or occupation of a rental property.
Tax Deductions
-
Rental real estate is subject to certain tax deductions, such as mortgage interest, property tax, operating expenses, depreciation and repairs.
Loan Alternatives
-
Obtaining a loan for rental real estate is more difficult than obtaining a loan for a primary residence. However, people considering purchasing rental real estate have a few lending options: a specialty loan, seller financing (the seller provides a loan to the buyer) or an owner-occupied loan (the buyer occupies a portion of the rental property).
-
References
- Photo Credit Jupiterimages/Photos.com/Getty Images
Comments
-
this is quite interesting. rental real estate is one of the forms of passive income investment. We are also offering this service at Vesper Property.
