I define assets as something that puts money in my pocket.

I define liabilities as something that takes money out of my pocket.

Is your rental property an asset? 

Your rental property is an asset in that your property may go up in value (property appreciation) over time and the mortgage will get paid down (mortgage reduction) over time. The sum of these two is the equity in your property. Equity is only accessible or useful when you sell or refinance the property.

I consider your rental property a long term asset.

Is your tenant an asset? 

When done correctly the monthly rent(s) will be greater than the monthly expenses. This surplus is called the monthly cash flow. Monthly cash flow goes in your pocket.

On a monthly basis I consider the rental property a liability and is directly responsible for taking money out of your pocket.

On a monthly basis I consider the tenant as the asset and is directly responsible for putting money in your pocket.

If all goes well on a monthly basis, I consider your tenant a short term asset.

Both the property and tenant are assets and both must be well taken care of for real estate investing to be viable.

In today’s residential real estate investment market finding a quality, equity building tenant is more important than ever for your property to become a long term asset. 

At Key Properties Niagara our many years of experience, knowledge and our due diligence on each and every potential tenant has enabled us to find quality tenants for our clients to help maximize the equity in their properties for long term wealth building.