By Katie Conroy
Investing in real estate can be a rewarding and lucrative endeavor, but like any investment, there are risks involved in purchasing a rental property. You can mitigate these risks by planning ahead and doing plenty of research. Here are some quick tips to ensure your success as a first-time real estate investor!
Do Your Homework
Purchasing an investment property is a lot different from purchasing a home to live in. The home features that matter to you might not make for a good investment, so keep your emotions out of the process and make decisions based on research. The Balance Small Business recommends researching essential factors like the property location, property value, and neighborhood rental rates before buying a property.
You will be able to find most of this information just by searching around online. However, working with a professional realtor will streamline things. An experienced real estate professional from the Hollish Hill Group will already be familiar with your local real estate market and will help you make a smart investment decision!
Make Necessary Repairs and Add Amenities
When you find the perfect rental property, tackle some quick repairs so you can get renters in there are soon as possible. As a landlord, it’s your responsibility to create a habitable living environment for your tenants. Check that the home’s plumbing, electrical system, and appliances are all running smoothly. You will have to repair anything that isn’t working before renting your unit, so make sure you budget for this added expense.
If you’re planning on renting a furnished space, then you’ll have to make some additional investments. For instance, you may have to purchase beds, tables, chairs, a couch, and more to attract renters. To stretch your dollars further, consider buying these items from large online retailers like Overstock. The good news is that you can find extra savings if you use an Overstock coupon or promo code.
Set Realistic Rental Rates
Setting the right rental rates will ensure you get the most money without risking long vacancies. To come up with the best rental rates for your property, start by evaluating your competition. Check out the rental listings for similar properties in your neighborhood and take note of what they’re charging. Pay attention to the features included in these other units and identify what sets your property apart. In-demand features will enable you to charge more for rent than your competition, so don’t overlook this step!
Learn How to Be a Great Landlord
Purchasing and fixing up a property is one thing, managing it is another. As a new landlord, you will have a whole host of responsibilities, from maintaining the landscaping around your rental to responding to emergency repair requests at any hour. Being a landlord is a lot of work, but it pays to do it right! Your tenants are much more likely to stick around for the long haul if you make an effort to maintain the building and take care of their concerns as quickly as possible.
Buying a rental property is exciting, but it’s important not to rush into things. Work your way through each step of the process slowly. From researching your property location to learning your landlord responsibilities, taking the time to do things right will increase your chances of success!
Katie Conroy is the creator of AdviceMine.com. She particularly enjoys writing about lifestyle topics and created the website to share advice she has learned through experience, education, and research.