Did you know that one in eight Americans (that’s28.1 millionpeople) own an investment property and consider themselves residential real estate investors?
Are you interested in joining this group? Do you want to take things to the next level and start a business around real estate rentals?
If you said “yes” to these questions, you’re in the right place. Here is your ultimate guide to investment property management. Everything you need to know is explained down below.
Why Buy an Investment Property?
There are lots of benefits that come with being a real estate investor. Some reasons to consider an investment property over other types of investments include:
Earn additional passive income
Enjoy full control over the investment
Enjoy tax benefits and deductions
Hedge your investment against inflation
There are also fewer risks associated with buying a rental property. Even if the market takes a negative turn, you at least still have your property. The same can’t always be said for other investment options.
How to Start a Rental Property Business
So, you want to start a rental property business? Here are some specific steps you need to take to make that happen:
Choose the Right Property
Start by selecting a property that’s within your budget and easy for you to maintain. If you’re a first-time investment property buyer, something like a duplex will be more manageable than an entire apartment complex.
Make It Appealing to Renters
Take care of all necessary repairs before you try to rent out your property. This will help you get more money for it, and you’ll be confident that it’s up to code.
Set Clear Tenant Rules
Set clear rules with regards to who you will allow to rent out your property. What is the minimum credit score that you’ll accept? Will you rent to people who have a criminal record?
Get Everything in Writing
Finally, draft contracts and make sure that all of your tenants sign them before they move in. Talk to a lawyer beforehand and make sure everything is official and you’ll save yourself a lot of trouble later.
Know When to Outsource
You know how to become a rental property owner and the basics of starting a rental property business. What if you don’t want to act in a landlord role, though?
If this is the case, you may want to consider outsourcing and working with a property management company. They can help you with the tasks that aren’t fun to do (handling maintenance issues, collecting rent, vetting tenants, etc.) but need to be done if you want to run a successful rental property business.
For many people, the costs of hiring a company like Rent Right Property Management are well worth all the benefits they provide. You can visit this website if you want to learn more about what a property management company can do for you.
Put Your Investment Property Management Skills to the Test
Now that you know more about how to manage rental properties, it’s time to put these newfound skills to the test. If you keep the information outlined in this investment property management guide, you’ll have everything you need to be an effective property owner and manager.
Do you want to learn more about property investment or investments in general? If so, visit the Investment 101 section of our site today for additional advice and resources.