Property rental as passive income

WLY -

We have a little piece of good news here! Few months before we engaged in our blog, we have made a bold decision to taking the financing option and to purchase a property at €675,000 at 90sqm in Lisbon, Portugal at a nice, quiet neighborhood not far from the Avenida de Liberdade. We would like to share our learning experiences at early 30s on property rental as passive income and to motivate you and ourselves further on this journey to passive income.

Below is a list of expenses incurred for property investment

  1. a one-off inspection fee - €250
  2. a one-off tax fee - €47,000
  3. yearly household insurance - €135
  4. yearly tax fee - €2,000
  5. rental contract review by lawyer - €250
  6. agency fee for rental - €2,030
  7. monthly management fee - €90

Some tips for property rental as passive income

  1. Start property investment at an age as early as possible. The logic is straightforward, if you rent it long enough, it compensates partially or even fully of your property value.
  2. Make a wise choice on property investment by considering factors like location, size, growth over time, and your target tenant. These all affect how likely and how soon the property can be rented out.
  3. Even recurring income from property rental sounds easy, there are expected and unexpected fees to incur each month like property management fee, some repairs etc. Keep an emergency fund with you.
  4. Make friends with tenant. A good rapport always make things easier and problems can be sorted out more rationally with more understanding. It's no harm to arrange some little surprise for your tenants like sending a hand-written season greetings card.

I hope this personal sharing does inspire to start planning your property investment early.