If you are interested in ways to diversify your income, property rental will always be a winner. Because of this, you should give yourself the chance to find a great property and align yourself with companies that can manage the property for you accordingly. To make sure that you are able to secure a great property and fill it with tenants on an ongoing basis, consider the tips below and start reaching out to the professionals that can assist you.
Tip #1: Choose the best property to purchase and rent out
The most important factor that you need to consider at first is to choose the best property to rent out. Start by researching the neighborhood. Only purchase rental properties in neighborhoods that are safe and attractive to prospective tenants. Be sure that there is plenty of home ownership in the neighborhood so that property values continue to rise and allow you to consistently find people to fill your building. You will also need to factor in the price of the purchase and your ability to secure financing. Get your credit rating as high as you can in order to get affordable rates from lenders.
Tip #2: Do business with a residential property manager
To make the process of renting out a property much easier, find a credible residential property manager. Start by researching their reputation and learning exactly how many properties they manage. They will be able to give you a written breakdown of all of their fees — to include maintenance, new tenant placement and a variety of other charges. You also need to learn their baseline fee, which will typically cost somewhere between 8% and 12% of the rent that you collect. Make sure that the residential property manager is also Better Business Bureau approved, so that you are making a wise decision in terms of professionalism and trust. Reach out to companies like NorthStar Cleaning & Property Services for more information about this type of service.
Tip #3: Keep the property clean and maintained
No matter what your tenants are paying for rent, it is your obligation to keep the property in the best condition that you can. This is both a matter of professional standard and a necessity to continuously have new tenants. In addition to hiring landscaping, you can hire cleaning professionals that will allow you to get the building ready for new tenants anytime you have turnover. You can expect to pay between $115 and $227 for this cleaning service.
Use these three tips to launch into residential property rental.Share