Rental properties can be great investments that generate a reliable recurring income. If you're a new real estate investor, however, you may be unsure of how to proceed.
Buying a property is the first step, but there's plenty more to being a successful investor. Knowing what to do next is vital if you want to make the best return on your investment.
Keep reading for a rundown of what you should do after buying your first rental property.
Renovate and Improve
Before renting it out, you need to make sure your property is of a suitable standard. Plumbing and electrical systems, for example, are essential, so make sure these are in a good state.
Things like fresh paint and landscaping aren't vital, but they'll make your property much more appealing to renters. You could also make other upgrades if you want your property to be more desirable than others in the area.
Hone Your Marketing
Quality property marketing is vital if you want to find renters. In a tough market, your property needs to stand out from others on the market.
Quality photos are very important, and any listing should contain the most important details along with engaging language. This can be quite challenging, but a property manager can help you market your property well and attract more renters.
Screen and Select Tenants
Ideally, you'll get a lot of interest and have multiple potential tenants to choose from. Carrying out a tenant screening process is highly recommended here.
You can determine if any applicants have had issues with previous properties such as not paying rent or causing damage. You can then narrow them down to find the ideal applicants. Having quality tenants will help ensure you can maintain a reliable, steady income for a long time without many issues.
Monitor and Maintain Your Property
Property maintenance is one of the most important responsibilities of a landlord. The tenant will be responsible for small tasks such as general cleaning and changing lightbulbs. Large repair or maintenance work, however, will be down to you.
Landlords have a legal responsibility to make sure a property is safe and fit to live in. It's also important to not leave issues for a long time. If tenants have no access to hot water, for example, deal with it as soon as you can.
If your tenants aren't happy, they won't want to renew their lease when it ends. You'll then need to spend time and money finding new tenants.
Build Your Portfolio
Depending on your investment goals, you may want to invest in more properties. The more you own, the more money you stand to make. Bear in mind that this means more work, so you'll probably want to hire a property management company to help you with everything.
Being a Successful Real Estate Investor
Every real estate investor wants to maximize their ROI, and doing all of the above will help. It can be difficult to stay on top of everything, but hiring a property manager can be an effective solution.
LHM Realty is a leading property management company that has been serving clients in the Phoenix Valley area since 2005. Take a look at our property management page to see more about how we can help you achieve your investment goals.
