An investment property is purchased by a real estate investor as a way to gain additional income by either renting or selling it. Selling is simple because you buy the property, pay the costs to renovate it and then sell it when you get the right offer. Renting your investment property has added benefits despite the extra trouble. As an owner, renting your property means you will be making a monthly income without losing value to your property. If a property owner wants to sell, he’s able to make a profit from property appreciation. However, if the investors is planning to rent it for two years and sell it at the end of the second year, then he’d be making profit on value and profit from rent (cash flow).
Renting is an attractive branch of real estate investments because its money without losing value. It is not easy to always find tenants that suit your demands and who have respect for your property and its possessions. That is why an investment property that is up for rent requires a lot of attention and supervision to make it work. There are investors who are just so dedicated to their property and tenants that they end up becoming multiple rental property owners.
The question you should be asking yourself is, how do I get my investment property rented and regularly? The answer to that question depends on your personal endurance to the work that comes with being a landlord. You hear stories from so many landlords about how horrible their experience is with some tenants, realtors and property issues. But they would definitely also say that financially it has been worth it.
6 Ways to Get Your Property Rented
Set Up Your Property
- Renting your investment property depends primarily on the cleanliness, style and location of your house. It is the most important factor for tenants without a doubt. If your property has new furniture, décor and is newly renovated, then it is already attractive for tenants who come for a viewing.
To set a standard for yourself, ask yourself if you live there. Be your own tenants. If the answer is a no, then you need to do something about it. Your property must meet your own expectations before that applies to potential tenants.
Finding Tenants
- Using advertisements and realtors to help you find tenants that you feel positively about is an extremely popular option. Realtors in particular are the ideal channel to finding tenants because of their interactions with tenants and the financial incentive for them to find you one as soon as possible. Realtors can also find you tenants that are looking for a property like yours.
A realtor or agent will also relieve you of dealing with logistics. Showing tenants the house yourself could leave you frustrated because you are not experienced enough in that line of work. That’s why personally I’d go with realtors despite the commission they might charge.
Rental Price
- The rental price of your investment property should not be a personal opinion of yours, but it should be based on the market price. Sticking to the market price makes you competitive and gives you an edge over competitors. If your price is too high, then you have scared away potential tenants for good and if the price is too low, then you have lost money in the process. Finding the right balance is the key element to make money and bring in tenants.
Legal Preparation
- Tenants, just like investors, want their rights protected. To make a tenant feel comfortable about renting your property, make sure you have all legal issues sorted it out. It would make the tenant feel safer about his financial and legal rights in the renting process. It also serves to protect you if the tenant damages your property or stops paying.
Hire a Property Manager
- There are two ways to think about this option: If you are prepared to spend some extra cash to be relieved of landlord duties, then go for it. If you can’t or don’t want to create another expense, then you will have to assume the duties of what a property manager would do to maintain the quality of your investment property. A property manager’s tasks range from advertising for new renters, lease agreement preparations, collecting rent, maintenance repairs, legalities and finally notify tenants of eviction procedures. So a property manager is basically someone who is getting paid to do all the dirty work that comes along with being landlord and it makes your life easier. It is highly advisable to hire a property manager if you can afford it.
Stay Connected to Tenants
- It doesn’t matter if you have a property manager or not; staying connected with your tenants shows that you care about their comfort and well being. It shows a different side of being a landlord, which is humility and empathy; both are qualities that will leave your tenants happy and willing to stay more in your property.
These steps are the major issues that can make or break your rental property in today’s market. Being prepared for all them means that you are willing to take the extra mile to becoming an experienced landlord. It may sound like a lot of work and such a big hassle to keep track of everything. But, if your final goals were financial prosperity, it would be wise to take them seriously. In real estate, you never know, you might turn out to become a multiple owner of rental properties.