Updated: Jan 22
Regardless of how much attention crypto receives, real estate remains one of the best investments you can make today. That is why the United States has over 22 million independent landlords, and the number is still growing!
However, there are a few things you should be aware of if you want to be successful in your real estate investment. Here's a guide for first-time landlords to help you make the most of your investment!
A first-time landlord's investment can be ruined if they choose the wrong property. Buying a fixer-upper is fine as long as you know how much work is required and there is no major structural damage. Before purchasing, always have a thorough inspection performed.
Searching for homes with popular amenities on the property can also aid in the search for tenants. Ample parking, outdoor spaces, newer appliances, and other amenities can help you find the right tenants and negotiate better rent prices!
You must also select the appropriate location. Stores and other amenities may come and go, so look for something permanent to help you find tenants and maintain the property's resale value. Schools, downtown areas, highway access, and public transportation stops are all excellent rental property amenities.
Tenant eviction is bad for everyone. You'll lose months of rental income and have to pay for the entire amount of damage they caused. Unfortunately, the only way to avoid this is to select the appropriate tenants.
When it comes to investing in a rental property, the three biggest risk factors are the property itself, the location, and the tenants. The only resolutions for them are preventative, so exercise caution. This includes a credit, criminal, and rental history, as well as proof of income!
Another important factor in protecting your investment is having a solid lease agreement in place with your tenants. Before taking on any new tenants, consult with an experienced attorney and draft an agreement that works for all parties.
Don't overspend, especially in the early stages of your investment. Set the first-year budget after the down payment and closing costs ahead of time, and stick to it as closely as possible!
Finally, you'll need the right management company if you want to create the right lease agreement, maintain the property, manage the budget, and find the right tenants. With a property manager, you can have all of your work done for a small percentage of your rental income. You can also be confident that your investment is being managed by experienced professionals!
Put your handy first-time landlord guide to good use and do the right thing for your investment today. Real estate can be extremely profitable if you have the right tools for the job, so start looking for the right team today!
Keep up with our latest real estate news and don't hesitate to contact us if you have any questions or need assistance with your investment!