Renting is becoming much more common as housing becomes more unaffordable. It makes more sense in many cases, too, when people don't want to be tied down to a single location. That's a big reason why 77% of the United States population prefers to rent.
That opens many opportunities for investors who want to grow their wealth. However, you'll need to go about things the right way. Here is how to find and manage rental properties with success.
Vet the Location Well
Property location will be one of the most important things to consider when buying homes. You want your investment property to be in a great location people want to live in. Although you can still rent in a less desirable location, it's much harder and brings less profit.
Look for up-and-coming areas if you want a deal. These areas have a lot of future growth planned, meaning you'll be able to take advantage of appreciation and higher rent.
Get an Inspection
You must understand your total cost when purchasing a home for rent. You won't learn everything about the property condition you're looking at on a quick look or by listening to the seller. You need a real inspection to get all the details.
Find a reliable home inspector who can help you vet your potential investments. Doing this will help you understand the true cost of buying a property and if it's worth the money.
Find the Right Help
Once you find a great property, it becomes a matter of making repairs and getting help to run things. It's possible to do this on your own. However, you may end up spending more time than you like taking care of things.
Make outsourcing part of your rental strategy. An experienced property manager can help you with many tasks. That includes things like tenant screening, property maintenance, lease development, and more.
Learn to Market
Just listing a property with basic photos and descriptions on rental websites isn't always enough to find reliable tenants. You must make your rentals stand out to attract the tenants you want.
There are several things you can do to better market your property:
- Invest in professional photos
- Create detailed descriptions
- Create a property website
- Advertise on social media
The more you do to market a property, the less time it spends vacant and the better applications you receive.
Build a Network
The properties you see on real estate websites aren't always the only ones available. You also have private sales, auctions, estates, and other sources of property sales.
It's easier to find these deals when you have a great network. Spend time talking to other investors and real estate professionals to see how you can add value to each other.
Find the Best Rental Properties
There is more to consider than you think when choosing rental properties. It isn't as simple as buying low and making passive income. It also means looking for properties in the right neighborhoods and proper marketing.
Ensure you use the guide above to find the best properties. And if you're looking for help managing any aspect of your new rental, PMI Prime Home is here to help. Reach out to our experts to learn how we can help you get the best return on your rentals.
