Real Estate Investing – Understanding Rental Property
What is Real Estate? Real Estate is the title given to the land or property which is the owner’s right to occupy and use the said land or property. It also refers to any improvements made by the owner on his Real Estate, whether they are improvements made in terms of design, structure, ornamentation, landscaping, or changes made to accommodate building requirements. The term Real Estate also encompasses any land or property purchased from a person, institution, public entity or agency for any purpose.
What is Real Estate? Real estate is real property consisting of the buildings and other material structures on it, and its accompanying natural resources like water, minerals or plants; immovable land of that nature; a proprietary interest in real property, buildings, or houses in general. Some jurisdictions also encompass other categories of real estate such as dwelling houses, commercial land, industrial land, and some categories of land that are used commercially and/or for economic development, i.e. agricultural land, improvements to real property and land that is owned by certain specific individuals or entities.
How are the numbers of the Real Estate industry changed since the 1980’s. The housing starts data released by the US Census Bureau for the year ended June 30th, 2007 shows a significant gain of Real Estate related industries. For the first time ever, more people than ever are living in the United States. These include many Americans who are renting their homes, but there has been a lot of migration to the cities as well.
As more people purchase homes, the Residential Real Estate industry works double time because there is an increase in the number of people moving into the city. In fact, the residential Real Estate market is one of the most active markets when it comes to Commercial Real Estate. When a property management firm is hired to handle Commercial Real Estate properties for their tenants, they are faced with the challenge of working with many different groups. This includes landlords who own multiple units, tenants who have diverse income levels, new owners of apartment complexes, and investors who are purchasing rental properties to turn them into profit-making centers.
Because the Rental Property sector is so large, there are many different areas of business where a Realtor can go if they want to diversify. They can invest in single family houses, apartments, condos, commercial real estate developments, and sometimes even vacant land. A Realtor can find properties that will fit a variety of lifestyles and income levels. This can make for a very interesting portfolio. For example, a Realtor can invest in a high end apartment building and rent out apartments to college students who are just starting to pay off their student loans and are in need of an alternative income stream.
A Realtor can also be involved in other facets of the real estate investment business such as leasing. When someone leases a property, they are renting it for a specific period of time, usually one year. The owner of the property must agree in writing to allow the Realtor to sign the agreement granting the right to rent. The agreement between landlord and tenant is called a lease, and the tenant signs it once they move in. It is important for a Realtor to understand all of these legalities because some tenants might try to get out of paying rent.