Choosing a rental property to offer in your area can be tricky. You have to know what people are looking for, what updates you need to make, and other basic facets of rental care to cater to your target tenant audience. Fortunately, some things can make the entire process a lot easier and work in your favor in getting tenants into your space quickly. Let’s explore 5 tips on how to invest in a good property for better rental returns.
1. Location, Location, Location
You’ve probably heard the worn-out, cliche phrase, “location, location, location”. While it is used in a joking tone most of the time, it is quite true. When choosing a rental location, you need to consider the location and ensure it is one that matches the type of rental you are wanting to manage. Choosing a rural, out of the way place will not appeal to a younger, college town population, for example. You need to read your area and figure out what type of population you are working with to find the perfect fit.
2. Research Short Term Rental Laws
With more and more people looking to use Airbnb, VRBO, and other similar short term rental sites, it makes sense that you may want to get in on the short-stay action. While this is a great way to make money without having long term tenants, some areas do not allow short term rentals. Whether part of an HOA or just written into local ordinances or laws, you need to understand the rules surrounding this venture to make sure you are in complete compliance. If you are unsure, having a property management expert walk you through the process might be a good idea.
3. Factor in Renovations
Getting a house in a good area at a great price is fantastic and is what everyone is shooting for but there is one thing you must factor in: renovation and repair costs. Is the house a fixer-upper or is it going to become a money hole? You have to have the house properly inspected to ensure your idea to save money on the sale price and just replace a damaged wall will not turn into save money on the repairs and spend more down the road because of a slow water leak damaging the walls and causing molding. If the price seems too good to be true, always check into it more thoroughly. It is better to ask questions than to end up surprised once the sale is complete.
4. Shop for What You Can Upkeep
If you are acting alone in managing the property, you may not want to take on an entire complex. If this is your first time investing in a rental property, you need to consider what is reasonable for you to properly upkeep and provide maintenance. You do not want to get in over your head; so keep it simple and expand once you are more comfortable. You can also easily bring in property management experts to help you keep up with larger properties once decide to purchase something larger or a second location.
5. Use Property Management Services
Being a landlord is no easy task. It is certainly rewarding but sometimes, having a little help makes it a lot easier. Using a professional property management service like Local Dwelling can help you stay on top of things and be prepared for everything leasing properties may bring. With a team of professionals behind you, you are ready to be the best landlord you can be!