3 Keys to Owning Rental Property for First-Time Investors
Posted on: 18 January 2017
Investing in rental property is a smart move, but it can come with its challenges. Unfortunately, those challenges can translate to a lot of stress for you. To keep your stress levels low and be successful in your endeavor, here are some tips you can use.
Do the Research
When you first make the decision to invest in real estate, you will more than likely get a lot of advice from friends and family members who have done the same. Although some of the advice can be useful, sorting through it all can sometimes lead to stress. To avoid this, you need to take the time to do your own research.
It is fine to get advice. It is even okay to follow it, but you will be sure you are on the right road if you take the time to learn what lies ahead. A great resource that you might not have considered is a real estate agent and property management company. You can learn the ins and outs of buying and managing the property you purchase.
Repairs Can Be Unexpected and Expensive
Regardless of how well your tenants take care of your property, repairs will crop up from time to time. Ideally, problems would appear when you are financially prepared to deal with them, but it is likely they will be unexpected.
To prepare for those repairs, you need to make sure that you have funds set aside to handle most emergency situations. You also need a listing of professionals that you can call on at any moment to handle those problems.
A good way to ensure that you are always ready is to contract with a property management company. The companies usually have relationships with professionals in the area that they can call on in an emergency. As an added bonus, your property manager can ensure that regular maintenance is performed at the property so that costly repairs can be avoided.
Screening Is Everything
You have to remember that your rental property is an investment. Allowing people to move into your home or apartment without proper vetting could spell disaster for you.
Since this is your first time owning an investment property, knowing which factors point to a potentially bad tenant can be challenging. However, a property manager with experience can help you screen applicants and narrow down your choices so that you only get the best of the best.
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