Rental property is gaining momentum. Both as a landlord and as a tenant. Buying property and renting it has become quite a bit of investment. Landlords are everywhere in England and many have built their portfolio that have turned themselves into a millionaires. Soon this fad will touch the Indian shores as renting is gaining ground.

Some individuals perceive that that the pension they will receive will not satisfy their lifestyle. They consider property because as an investment it will give stable returns. While the share market is highly volatile and property is safe. And with increasing valuations on property the returns too keep increasing.

However simple and easy this may sound it is equivalently complex. Maintaining your property is very important. Over the years if your property is not maintained and is not all that polished the buyers will tend to look the other side. One could also need agents to manage the lettings of your plot. But with around 15% of charges on your annual rent income it would be advisable to learn to do-it-yourself.

Taking up rental property as a tenant is gaining popularity due to a number of reasons. First as jobs are getting contract oriented, individuals do not want to find themselves in a lock-in property soup. Also increase in divorce rates, emigration of students and more contribute to single person accommodation on rental basis.

Picking up a plot to rent is a crucial decision. You have to know which property and where. Up-coming areas will be common. Hence you should inquire about the community and transportation amenities. Buying a plot in some remote area may not add to a profitable portfolio.

Some people even show interest in buy-to-rent commercial property. Although it is riskier it is equally profitable. But for a commercial area you should thoroughly inquire about all the details of transportation, office settings and neighbouring settings. If they are conducive to commercial growth then go ahead and purchase.

However with all the advantages of buy-to-let it has a few disadvantages too. Sometimes tenants can falter in payments or fall in debts and unable to pay another penny. Or sometimes there is a period where the property is not let out yet it is incurring standard expenses. And it is not easily disposable like shares and other investments. It can take a long time. Thus if you need money to realize quickly then property is not a good investment.