Investing in Rental Properties
5 Things to Rememeber:
If you are looking to diversify your investments and take advantage of the current state of the housing market by investing in rental properties, then we can help. We have years of expertise when it comes to working with real estate investors who are looking for rental properties that can provide them with short term and long term income as well as the tax benefits that owning a rental property can bring. And while working with a REALTOR® to locate rental properties that meet your criteria is important, there are some things that you need to be aware of when investing in rental properties.
1. Be aware of the effort you will need to put forth
If you do not use a REALTOR® to find the properties that you are looking to buy, then you will need to do a lot of legwork on your own. Your REALTOR® will have access to huge databases of possible properties for you to look at and will be able to narrow down the available properties in your area based on your specifications. Your REALTOR® also will have firsthand knowledge of properties as they are listed, including short sale and foreclosure properties that can sometimes be purchased for far below market value
2. Be aware of the need to manage the property or properties that you purchase
There is more to owning an investment property than simply finding a tenant and signing a lease. Your property will need to be kept within local code and will need to be maintained and watched over. You will need to have a process in place for accepting rental payments and for performing inspections of the property from time to time. Many times, an investor will hire a REALTOR® or an agent that the REALTOR® recommends to handle these issues for them. Your REALTOR® can guide you through the process
3. Be aware of the attributes of a great investment property
If this is your first time buying an investment property, you may not be aware of where to look for the best properties for your portfolio. A driving factor is location. The closer to the center of things in your area, the more rent your unit can command. As a rule of thumb, the heavier the traffic, the easier it will be to rent the property and to command a good price for rent. If your property is located close to a major employer, like a hospital, university, or a large corporation, you can usually demand more rent than one that is twenty minutes away. Likewise, you want to find properties that are low maintenance so that you`ll have fewer headaches and expenses down the road. You should also look for newer homes when possible, as there will be fewer building code issues or maintenance problems. And last of all, look for properties in stable neighborhoods that are experiencing growth
4. Create a good team of professionals who can assist you to build your wealth
It is critical for you to start with a team of competent professionals to assist your projects and protects your assets. Your members include the following:
- Real Estate Attorney
- Real estate consultant / License Realtor
- Licensed Home inspector
- Licensed Home appraiser
- Licensed Contractor & Handyman
- Professional property manager
These are just a few of the things that you need to be aware of when selecting an investment property to purchase. Make our licensed REALTORS® as part of your team. Contact us to find out how we can be your guide to finding and successfully making offers on investment properties that will make you money.
5. Keep your renters/tenants happy
While some factors are beyond your control, such as your renter relocating for a new job, there are several things you can do to keep your reliable tenant happy and eager to renew.
Why do renters stay? How do you get them to stay?
What about the other half?
While half of long-term renters are happy with their rental situation, half are less than satisfied. The same study reported that of the long-term renters who are planning to move within the next three years, 55 percent will move to another rental. Don’t let that happen! If you’re lucky enough to have a good tenant, you want them to stay in your rental.
So what can you do, as a landlord, to boost renter satisfaction?