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Question by fabol0us123: what are the pros and cons of leasing, renting, and rent-to-own in real estate? (investors help me)?
I want to know what is the best methond I can go about making money as an investor. I posted a question earlier on the difference of leasing, renting, and rent-to-own but I didn?t mention that I want to know the pros and cons from an real estate investors view. Not from a person who wants to buy the property. So what are the pros and cons of leasing, renting and rent-to-own from a investors point of view?
Best answer:
Answer by Johnsmatrix
I am currently taking classes for my agent licence and I plan to flip homes. On to your question.
Leasing: Mostly beneficial when doing commercial real estate as you are guaranteed a tenant. Business leases also carry less rick in terms of property damage. Although business do sometimes go out of business so the tenancy thing can go both ways.
Renting: The prescreening process should be diligent. Be very carefull of who you rent to. You risk property damage as well as run into expenses such as upkeep and general repairs.
In any case a reputable property management company should be considered to handle the collection of rent and interactions with renters. Renters can be a burden and a good property management co will know what where legal responsibility lies in disputes as well as how to evict someone quick and legally.
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