Are you thinking about purchasing an investment property? Many people want to invest in real estate, but they are hesitant because they do not know what to expect. The key to the success of any landlord is being able to effectively and efficiently manage your properties. You want to make sure that you are consistent with maintenance and that you are renting to the right tenants. Here are some tips on how to efficiently manage an investment property and ensure a positive experience for you and your renters.
Knowing the tenant landlord laws is one of the best things a landlord can do to protect themselves and their investments. You want to be prepared for any legal action that may arise by becoming familiar with your rights and the rights of your tenants. Do your best to stay up to date on the law and any changes that may affect you as the landlord.
2. Screen Your Tenants
In order to protect your investments, you want to do all you can to ensure that you rent to tenants that will respect your property and pay their rent. Implementing a screening process for applicants will help you find the right tenants. Researching things like credit score and employment history will give you a good idea of how dependable the applicants will be. You can also ask for references from previous landlords to see what their experience was with the tenant.
Being straight forward and transparent with your tenants will help set the expectations up front. The tenant needs to know what maintenance, if any, they are responsible for. You don’t want any possible excuses for things being improperly maintained. You also want to be explicit on rent due dates in the lease agreement. Make sure you remain consistent with what is stated in the contract to avoid any misunderstandings in the future.
4. Know Your Market
Make sure that you have a good understanding of the market you are renting in. In order to get tenants into your home, you need to price the rent around something that is competitive with the rents of comparable homes in the same area.. As property values rise in the area, you can raise your rent to match the market.
5. Regularly Maintain Your Properties
Keeping your properties well maintained is important for two reasons: to attract tenants, and to save you money. Things like regular touch ups to paint and a well-groomed yard will go a long way in attracting new tenants. When it comes to saving money, spending small amounts of cash now to maintain appliances, electrical, and plumbing will prevent much larger, more expensive problems in the future. As you gain more properties, you may want to consider hiring a property manager to stay on top of these things for you.
Real estate is the best financial investment that any person can make right now. The market has always and will continue to trend upward as home values constantly rise over time. If you or someone you know is thinking about investing in real estate, please contact one of our mortgage professionals today to see what financing options are available.