Is A Rental Property A Business?
Friday Feb 24th, 2023
Is a rental property a business?
And if it’s then to whom may it suit?
We have been asked this question a lot...
…Because this is the easiest way to generate passive cash flow...
And everyone wants to know whether they could take it as a full fleshed business rather than an investment.
The answer is it depends…
Rental properties require routine and continuous maintenance which can qualify it as a business.
You own a few apartment units and rent out those units to several tenants.
To keep everything under control, you are likely to be found working on the property including managing the properties, listening to the Tenants’ requests, finding new tenants, showing physical presence when necessary, or putting new furnishings.
If you could manage to deal with these hectic issues swiftly, then it would be considered as a business.
And there’s a hack. You don’t have to do all of it by yourself; you can hire a property manager to regularly manage your property and…
… Voila! You’re in it to win it.
The bottom-line is if managing is not an issue then why not make it as a full-blown business?
Sade Sanni, Broker of Record.