If you are planning on investing in some property, let us give you some helpful hints. Of course, anything you try for the first time can be stressful and unknown.
But, with some guidance and insider info, things will be sure to run smoothly sooner than later if you stick to the principles.
Start by Doing Your Own Research
Now we don’t want you to just take our word for it. We can give you ideas and help you along, but doing your own research is also very beneficial. There’s no substitute for learning by doing your own research and work. Read some investment books, attend seminars, take online courses.
These will all give you the education and background you will need to make such a big investment. Having the proper knowledge will help you feel at ease with something that can be a big financial undertaking. You’ll want to find out how to select the right area, how to price your rental at the right price, and really understand the value of a property.
Know the Rental Value
It’s extremely important to know the potential rental value of an investment property. One of the best ways to do this is to look at similar homes in the area you’re looking in. Try to get an idea of what they are pricing their homes for. Go check out the area and see what they may be offering potential tenants.
You can call on ads, check online, or just stop by properties. You definitely want to know how much you can feasibly rent your property for before you make any decisions.
Don’t Overdo it
Of course, you want your rental property to look nice and entice potential renters. However, don’t overdo it too much. You want to make sure that you keep your cash flow at an obtainable level. Avoid large investments in unnecessary upgrades that don’t yield higher rental income or add to the value of the home.
While you’ll most certainly want to make necessary repairs and make sure the home is desirable, you don’t need to go overboard finer details that won’t appeal to renters.
It’s also important to consider regular maintenance issues that could pop up at any time. This consideration factored in your rental price, will help ensure that at the end of each month, you’ll have money to put in your pocket.
Choose Good Tenants
While this might seem like the most obvious thing that you can do, it is very often the most overlooked portion of the investment property process. You want to make sure that you’re doing the proper background checks, as well as checking previous rental history. We have an extensive number of property management services that we offer that go over some key items to address.
Make sure your potential tenants don’t have a history of missing rent payments, destroying property, or even a track record of throwing loud parties. Remember, this is your house and your investment. You can’t be afraid to assert yourself when stressful tenant issues come up.
Sources:
US News, “A Guide for Investing in Rental Property” Retrieved from: https://money.usnews.com/investing/real-estate-investments/articles/2017-08-23/a-guide-for-investing-in-rental-property. April 15, 2018.
Huff Post, “5 Tips for a Low Stress First Rental Property Investment” Retrieved from: https://www.huffingtonpost.com/dean-graziosi/5-tips-for-a-low-stress-first-rental-property-investment_b_8399900.html. April 15, 2018.
