Owning an investment property is a big commitment, but it can be highly beneficial if it’s done right. For families, this can be a great source of passive income. But there are a lot of factors to consider, and if even one of them is off the mark, you may find it difficult to make your venture a success. From the location of the property to the design and amenities, there are many aspects that need to be carefully planned out with your long-term renters in mind. Not only that, it’s important to note the true cost of owning an investment property. Maintenance, taxes, upkeep, and repairs/replacements can add up throughout the year, and that’s only if there are no emergencies.
The good news is there are many things you can do and utilize — such as property management software and security measures — to make sure your property attracts long-term renters and continues to bring in an income for you. Here are a few pieces of advice to help you along the way, courtesy of Philly Home Investor.
Initial steps for your business
Finding the right rental property market is a great jump-off point when starting your rental property business. By researching the right areas to rent in and networking with local real estate professionals, you will be better equipped to find a place to rent out that will always be booked. Another important step is protecting you and your business assets. One trusted method is starting an LLC in order to gain personal liability protection and pass-through taxation flexibility.
Hire the right help
Owning a property can be stressful, simply because there’s so much to do and take care of. But with a property manager, you can alleviate some of that stress and make sure your renters are well cared for. Be sure to look for a management team that offers tenant screenings and 24/7 assistance, and ask about any resources that will help make your time with them as smooth as possible, such as technology that will keep you connected. This will be a big benefit during the year, as they will be there to handle emergencies and other issues when you cannot.
Find the appeal
Whether you’ve invested in a new property or one that could use a little fixing up, it’s important to make sure you look for the best ways to make it appealing to potential renters. This might mean making additions or upgrades to the property. It’s crucial that you research how those changes will affect the return on your investment. For instance, in New York, it might be beneficial to have a good-sized parking space available — or if the property is on a beach locale, an outdoor shower that will allow renters to quickly rinse off. These types of additions can be expensive, but they will make your rental more compelling for the long haul.
Keep it safe
No matter where your investment property is located, renters want to know that they’ll be safe while living there long-term. There are some simple, inexpensive things you can do to make sure the home remains relatively safe, such as adding bright motion sensor lights and prickly bushes around the perimeter to deter thieves. Larger measures might involve installing or upgrading a security system and wiring an alarm that notifies the authorities in case of a break-in. Not only will making some changes help your renters feel safe, but they’ll also give you peace of mind when the property happens to be unoccupied.
Invite potential renters over
When it comes to selling your rental, it’s a good idea to host an open house. This will give potential renters a feel for the layout and how they’re going to set up their furniture. They’ll also
get to know the design of the house, which should be kept clean and attractive for faster occupancy. One great way to promote the rental’s design is by making sure it’s spotless before the open house, and make only minor adjustments, if necessary, to avoid exorbitant costs.
Turning your investment property into a long-term rental that will turn heads may take some time, so start planning in advance before you make any decisions. Do some research to make sure those choices are right for you, as this can save you time, money, and energy.
Need to sell your Philadelphia-area home quickly? Get your no-obligation all-cash offer from Philly Home Investor today!