Many people buy properties and rent them out to boost their income. Rental property investments can be particularly attractive for those who are not willing to risk their investment money in stocks or bonds. However, investing in a home can have its problems too.

The reality is that owning a rental property isn't for everyone. Unless you own multiple properties and plan on having them managed for you, then the management and repair of that property is up to you. It really depends on how much time you have available, the proximity of the property, whether you are prepared to organize or do repairs and maintenance yourself, and whether you like dealing with people and the problem they create. If the home is generally in good shape and you have good reliable tenants, then managing the rental property yourself may be your preferred option. Managing your own rental properties can involve time, money and unwanted stress.

When considering buying rental property, tips that you might need to know include:

Arrange a home inspection before you purchase to make sure that the home is suitable as a rental property and that it is in good condition from the start. There is no reason to being by having to fix things unless you know ahead of time that will be the case. Buying the property at a discounted price as a "fixer-upper" is a different scenario altogether. If you have the time and skills, then a run-down property might be a great way to get a buy a property for a lower cost. However, you will need to factor in how long will it be before you can have it fixed and rented. You'll need to know when you can begin to recoup some of what you have put into it. Remember, to put a value on your time when doing your costings.

There is an old real estate saying that you make your money when buying a property. If you buy the property at a value-for-money price, then it puts you in a strong position when, or if, you come to sell it. However, if you pay over the market value, then you will generally need to hang on to the property longer before reselling it at a profit. A higher purchase price could also affect your mortgage borrowings.

Be conservative with your budgeting. If you buy a rental property that costs you thousands of dollars a year in repayments and interest, then you will need to allow for periods of non occupancy. If the economy takes a downturn and you can't rent it, you could be down thousands of dollars until someone moves in. Depending on where you are in the country, buy at a price that will let you charge close to the going rate in your area for rent. The property will need to be presented at least as well as the competition, if not better.

A bigger house isn't always a better rental proposition. Getting a rental property with two stories, minimal insulation and ten rooms isn't necessarily your best choice. A smaller house may be more viable depending on the market. Certain types of properties attract certain types of tenants. So, it pays to know who you are targeting, be they a family, business professionals without kids, retired folk, or maybe some college students. A retired couple may pay less rental than a family, or group of college students, but then the property may suffer less wear and tear.

Use a common sense approach when it comes time to buying rental property. Tips that will serve you well are, if it's too big for you, it may be too big for others. Get a property that will cost less to operate. Choose one that is comfortably within your budget, so you can afford to make repayments if it's not rented immediately. A rental property can be a dream come true in helping you to get a better income if you buy smart.