Purchasing real estate is a lucrative act of investment. However, if you're looking to rent out your property for some extra profit, beware that the rental business is not a simple turnkey operation. Investment property owners need to manage their real estate assets effectively and stay up to date on features that are desirable in the rental market. Professional property investors cite risk and a lack of education as major reasons for failure in the rental business; however, don’t let that deter you.
With these simple tips from Uptown Syndication, you can find success by making informed decisions that appeal to potential renters.
Make Strong Purchasing Decisions
If you’re thinking about renting out your property or investing further in real estate, there are certain considerations to keep in mind. First and foremost, consider property management. Do you have the time and expertise necessary to maintain upkeep on the property, or will you need to hire a property manager? It is also prudent to thoroughly research the rental market in your area to get an idea of how much you can charge for rent based on the location and the type of home you're purchasing. Keep in mind that you will fare better in the rental business if you learn how to monitor real estate trends and stay on top of what renters are looking for in a property.
Prepare Essential Amenities in the Home
While it may be tempting to focus on implementing the latest interior design trend that everyone's talking about, the bulk of your work as a property owner is maintaining essential features on your rental property and making sure that it is rent-ready. There are a number of common repair issues that must be addressed regularly, including problems with appliances, plumbing, and pest control. It’s also expected that any short-term rental property will provide for the following safety considerations and basic amenities:
• Smoke detectors
• Fire extinguisher
• Bathroom cleaning supplies
Beyond the basics, there are certain amenities that can level up your rental. Stainless steel appliances, quartz countertops, a hot tub, fiber-optic internet, smart home features, or even a car-charging station.
Appeal to Renters with Great Design and Advertising
Preparing essential amenities is the bare minimum expected of property owners; it likely won't be enough to draw in many would-be renters. Especially if your property is in a popular area, you will need to go the extra mile to catch the eyes of prospective tenants. This is where effective interior design comes into play, and it may be worth your while to hire a local expert in the field.
Once the property has been reborn as a perfectly cozy home, the only thing standing between you and a booming rental business is proper advertising. Listing the property on rental sites along with stunning photographs and a captivating copy can ensure that your business reaches as many people as possible.
Protect Your Business Long-Term With an LLC
As an additional consideration, investment property owners should look into establishing a limited liability company. An LLC provides certain protections against litigation during the course of operating your rental business. You can hire a lawyer to form an LLC for your business, or better yet, search for a formation service that may serve your needs for cheaper. In addition to safeguarding your assets, operating as an LLC also offers tax benefits that shouldn't be ignored.
Taking proven tips to heart helps new investment property owners start off on the right foot. Entering the field with a strong foundation and a personable understanding of how to appeal to renters can protect new investors from many of the common pitfalls that line the path to success.
Uptown Properties has been in business since 2010 and we pride ourselves as leaders in our local real estate market and the property management community. Call 503-941-0276.
Author: Ethel Lair of Legacy based living