Property rentals are a type of real estate investment in which you rent out space or units to tenants. These rental agreements are generally for a specified period of time and can be written or oral, with a tenant paying rent to the landlord in exchange for the use of a property. Rent may be paid in cash, by check, or through an automatic debit from the tenant’s bank account. The tax treatment of residential rental properties can vary depending on the circumstances and the owner’s material participation. For example, rent paid in a trade or business is usually tax-deductible, while the rental of a personal residence or undeveloped land is not.
There are several different types of residential rentals, including single-family homes, condos and co-ops, and multifamily homes. Each type has pros and cons, so it’s important to understand the different options before investing in one. For instance, if you’re looking for a property with more privacy, consider renting a single-family home. These residences have direct access to the street and don’t share walls with neighbors.
Before you decide to buy a rental property, make sure the amount of income it will generate is greater than the monthly expenses. It’s also a good idea to consult an accountant for detailed information on the tax implications of owning and operating rental property.
Many people find rental properties through online listings. Websites such as NYBits and RentHop list apartments from individual owners, management companies, brokers, and subleters. In addition to allowing renters to search by building, neighborhood, and poster (including brokers), NYBits and RentHop have a stringent verification process involving real humans to weed out scams and false advertising.