Article courtesy of Natalie Jones
Photo courtesy of Burst
Are you considering real estate investment? If so, you should understand three things. First, managing a rental property is a lot of work. Second, your profits will largely depend upon purchasing the right property in the right market. Third, you don’t have to go it alone. By hiring qualified professionals in your area, such as contractors to help with maintenance or property managers to deal with rental issues, you’ll set yourself up for success.
Before you get started, here are some tips on how to run a profitable investment property that your renters will love:
Is a Rental Property Right for You?
Running a real estate investment property isn’t a wise decision for everyone. If you don’t enjoy the real estate industry or are looking for a way to get rich quick, there might be a better alternative for you. Therefore, your first major decision should be determining whether or not to invest in a rental property.
To help you decide, real estate broker James Kimmons recommends considering the following factors:
- The time it will take you to find the perfect property, including researching neighborhoods and visiting properties
- The time you’ll spend researching and evaluating properties to find the perfect one
- The time and business skills required to manage the property and set yourself up for potential profits
Before you rent a property, you’ll need a legally binding contract. The rental agreement should include details like the length of the lease, the monthly rent amount, and any regulations regarding living arrangements. It’s best to hire a lawyer specializing in landlord and tenant law to help you draw up this contract.
Hire a Property Manager
It takes dedication and effort to build a successful rental property business. And since the average rent in Gilbert is $1,245, you want to make sure your property gains enough value to compete in the market. If you’re a first-time homebuyer or have never been a landlord before, you can save yourself a lot of stress by hiring a property manager. The right property manager can take some of the weight off your shoulders by screening tenants, collecting rent, coordinating repairs, and helping boost your home’s renter appeal so you’ll get top value.
The Right Home
LawDepot recently released a list of factors tenants look for in a potential rental. In addition to not needing any repairs, the ideal home for renters typically includes easy-to-clean flooring, laundry services on the property, and upgraded appliances including a dishwasher. Preferences vary by region, so it’s crucial to research renting conditions in the local area before making a purchase.
Once you’ve found the perfect home, or you decide to rent out a home you already own instead of selling it, you can increase its appeal with some thoughtful interior design, well-lit pictures for your property ads, and staging. If you’re renting out a furnished unit, consider budget-friendly, decor with soothing colors to promote a sense of peace. These tips from Care2 will help prospective tenants feel relaxed when they enter your property. Don’t overlook the small details because they can help you convert prospective tenants into renters.
Remember, your rental property is a business, so you should treat it like one. File taxes for the profits you make on the monthly rent. Hire an accountant to ensure you’re getting the most expense deductions and tax breaks for your investment business.
Additionally, you should research local laws before investing in rental properties. Believe it or not, rental properties aren’t legal in all areas. Talk to a lawyer, look at a copy of the deed, or research on the U.S. Department of Housing’s website for further information.
As you can see, real estate investors have lots of big decisions to make. Running a successful rental property takes quite a bit of work. You’ll be responsible for building maintenance and upkeep, emergency repairs, finding tenants, and being a good landlord. If you’ve never owned a property before or have no prior landlord experience, your best bet is to hire local professionals to help you. By investing a little money upfront in reputable, experienced contractors and property managers, you’ll increase your profits in the long run.