Rental property is a great way to get into the real estate market. It’s a good investment for people who want to have some money in their retirement fund or for those looking to make more money on their investments. If you’re considering this route, then it might be worth your time to read these six clever tips that will help you turn your rental property into an even better investment!
1. Get A Property Manager
Depending on how busy your schedule is, hiring a property manager can be one of the best investments you make. As mentioned by Henderson property management, you’ll want to find someone who understands your goals and is personable enough for you to trust them with managing your property. They should also have experience working with properties like yours, so they know what it will take for your investment to grow in value over time.
Once you’ve chosen a PM, provide them access to all communications regarding repairs or anything else that comes up about the house. This way, they can act quickly on things without waiting for approval from you first if need be (or vice versa).
2. Take care of the Property
If you want your rental to bring you money, you need to keep it in a condition that will attract tenants:
- Keep the property clean and tidy, offer professional cleaning services every month or two.
- Repair broken stuff as soon as they appear – this means appliances, door handles, taps, etc.
- Inspect your rental regularly for any potential issues with plumbing/electricity/roofing – fix them before someone gets hurt!
- Take good care of the garden.
Your rental will get you money only when it is rented, so keeping it in good condition for your tenants to enjoy will bring you more income than if they spent their time and energy on repairs.
3. Enforce Rules
Having rules with your tenants is essential for you to make sure everyone stays safe in the property.
For example, if pets are on-site, it would be wise to outline what animals are allowed and not allowed. If you do this at the start of the tenancy, then once they’ve agreed with their pet, that will be enough for them to know what’s expected when living at your rental property.
When rules aren’t enforced or, even worse, broken, tensions can arise between yourself and your tenant, which is never good, especially if they’re violating the terms of their lease agreement. Of course, each situation needs different approaches, but either way, it goes back down to enforcing rules like no excessive noise after certain times (depending on where you live), parking space, etcetera!
4. Have Insurance
Having landlord insurance is a no-brainer for landlords, but not all of them do it. This is the first step to making your rental property profitable. You can never tell what will happen, and you want protection if something does go wrong with one of your properties.
Insurance will also help protect you from issues with tenant damage. If a rental unit is damaged and the damages aren’t covered by insurance, this can be costly for landlords. The best thing about an insurance policy is that it covers everything, so if there are big repairs needed on your property due to water or fire damage, then you get reimbursed without having to pay any out-of-pocket costs yourself – how great!
5. Screen Your Tenants Thoroughly
You don’t want to end up with tenants who don’t pay rent on time, destroy the property and skip out without notice.
Screen your tenants thoroughly by running background checks and credit reports to ensure they’re fit for tenancy. This is also a good idea if you plan on renting to families since children can cause more wear and tear than adults alone. It would help if you also asked for references from their previous landlord or employer and the contact information of any family members who will be living with them. These precautions may seem like overkill, but it’s better to err on the side of caution rather than risk losing money every month because chances are, these things won’t improve once you’ve rented them your new home. Hence, at least know what kind of person you’re dealing with before committing to them.
6. Update your Rent Prices
Over time, the rent prices of your rental may increase. It is best to keep up with current market standards by keeping an eye on what other homes are listed for in the area and adjusting your price accordingly.
You can also track local trends through online resources or even ask a realtor about them! If you are using a realtor to manage your property, be sure to adjust the rent prices accordingly.
Rental properties can be a significant investment, but you need to know how to manage them properly. Highlighted in this blog post are six ways to make your rental a profitable investment. By reading through this article, you will better understand how to manage your rental property.