What Is a Major Disadvantage of Owning Rental Property

question 8

Multiple Choice

What is a major disadvantage of owning rental property?

• A)You cannot set your own rules for the house.
• B)You cannot evict a tenant.
• C)Risk of the tenant not making all of his or her rent payments.
• D)All of the options are correct.

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Definitions:

Net Method

An accounting method that records purchases at the net price after deduction of any purchase discounts.

Perpetual Inventory System

An inventory accounting practice that instantly processes and records purchases or sales utilizing computerized point-of-sale systems alongside enterprise asset management software.

Merchandise

Products that are purchased and traded during business operations, usually in a retail or wholesale environment.

Perpetual Inventory System

An inventory management system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.