Investing in real estate can be a great way to ensure your lasting financial success. According to RealWealth Network, around half of Americans making investments focus primarily on real estate, a number that has climbed significantly since 2007 due to strong returns. If you are thinking about investing in a rental property, the following five tips presented by Lucciare will help you to ensure that it is a success.
1. Start With the Right Property
First and foremost, you need to make sure you are buying the right property. As with any other investment property, rental real estate is all about location. Explore market data in your area to see which areas are in-demand. With some careful searching, you may be able to find an area that is currently undervalued but appreciating.
Keep in mind that some properties are going to need more love than others to get them ready for renting. You should create a financial plan for your investment. Consider how much it will cost to buy and fix up the property versus your expected returns in rental income.
2. Invest in Getting Repairs Done Right
When you need to repair something in your property, whether it is the initial renovation or repairs while you are renting, make sure to get it done right. It may be tempting to save money by DIYing the issue. If you are an experienced contractor, this may be a reasonable option. However, for most investors, it is better to hire appropriate professionals. A poorly done repair can result in problems cropping up again quickly. In most cases, it costs less to just do the job right the first time. Plus, renters will be less interested in a property that always has repair issues.
3. Renovate Kitchens and Bathrooms
As you are choosing how to apply your budget, consider focusing on the kitchens and bathrooms. These tend to have the best return on investment for renovations. When someone is choosing a place to live, these tend to be among the most important factors. When you walk into a home with a great kitchen that features new appliances and wonderful countertops from Lucciare, it immediately feels more modern and premium, even if the rest of the home is more dated. Similarly, a well-finished bathroom elevates the whole home.
4. Take Great Photos and Consider Staging
Good photographs are essential for renting out a property well. In most cases, these will be the first impression that potential renters get of the space. It is typically worth it to hire a professional photographer to come in and do the job right. You may want to stage your units by temporarily decorating them with furniture and other items to make them seem more appealing. Doing this can help with photographs, showings, and getting your units rented.
5. Consider Hiring a Property Manager
Finally, think about whether you need to hire a property manager. This should also be part of your budgetary considerations when you select your property. Having a manager means that you can rely on fast and professional rent collection, “responses to renter” requests, and other management concerns. If you decide to list your property as a vacation rental, companies such as Turnkey can help ensure the property stays clean between renters and provide support for your guests around the clock. Typically, you should only attempt to manage your property yourself if it has only a few units or if you are doing it full-time.
Work Towards Making Your Investment Property a Success
Purchasing an investment property is a wise decision, but remember that it requires a lot of hard work on your part. Using the above tips, you can help to ensure your investment thrives. Learn more today!
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