5 Qualities to Look for When Buying a Rental Property

buying a rental property

Did you know that there are almost 50 million rental units in the United States alone? Investing in a rental property is one of the best decisions you can make in the current economic climate.

You may be wondering about rental property investments and how to buy a rental property. Here are some tips for buying a rental property that will bring you a great stream of income in no time.

Check Crime Rates

You will not be able to attract good tenants if your rental property is in a bad area. Thanks to the internet, you can easily check the crime statistics in the area of your rental property through the library or public resources.

Sometimes crime rates in an area will fluctuate due to a variety of factors. You can see if there is a police presence in the neighborhood as well. For some of the best information on criminal activity, there are many watchdog sites that have other details.

Get an Inspection

If you decide on a rental property that you want to invest in, you should fork out the money to get an inspection done. That way, you can pay a little bit to see if there are any major problems that could cost you a lot more down the road.

Your inspector may point out problems with the rental property that can be easily fixed. Sometimes buying the rental property and doing some simple renovations can actually increase the property value by quite a bit, allowing you to charge more for rental fees.

Calculate Property Taxes

When you factor in your regular expenses for rental property investments, you need to factor in property tax rates. Location plays a huge role in this, as more urban and metropolitan areas tend to have higher property tax rates overall.

You can use the property taxes to determine how much rent you will charge your future tenants. For instance, if the market rates coincide with it, you may even be able to ask for more rent to cover property taxes if the amounts are higher than you expected.

Scout Out the Location

Location is one of the most important considerations when thinking about rental property investments. You want to make sure that it is close by to amenities such as shopping, banks, grocery stores, and other places that your tenants might need to access on a regular basis.

You can also check out the job market in the area to see if it will present employment opportunities in the future. This could potentially bring the value up on your rental property investments.

Buying a Rental Property Should Be Easy

When buying a rental property, you should not have to worry about whether or not it will be prosperous. With these features, you should get the best deal around on your rental property investments.

Want to learn more about investing in a rental property and getting your business going? Take a look at our site or contact us today for answers to all of your questions.

5 Simple Yet Effective Upgrades That Improve Property Value

property value

When looking at the year 2020 in comparison to 2021, there has been an increasing interest in new homeowners wanting to improve their property value. The pandemic has continued to affect many homeowners and because of this many Americans want to revamp their homes. Homeowners are truly beginning to get more creative with what they currently have.

If you’re looking to do the same then it’s crucial as a homeowner to know which type of upgrades will help the rise in your house’s value. It’s also good to factor in what type of buyer you’re dealing with as well. A lot of the time a successful remodeling project means more added space.

Are you interested in learning more? If so continue reading to find out about the effective upgrades that improve property value!

Remodel the Basement

If you have the extra space downstairs this is a great opportunity for you to remodel your basement. Many buyers with high incomes in the Pacific Northwest and the Northeast love this added feature. Most likely if you remodel the basement you’re creating additional square footage that needs heating.

This remodeling opportunity will be sure to put your home at a higher value. An updated basement can add another $40,000 to $50,000 to the price. Fixing up a basement can cost anywhere from $18,400 to $34,000. 

This will also depend on how much square footage you’re working with. This project will include flooring, installing drywall, and painting.

Opening the Floor Plan

In order to improve the property value of any home, it’s a smart idea to open up the floor plan. It’s important to note that it’s best to open up the layout by knocking out the right wall. Many buyers love houses that are opened partly in the dining room, living room, and kitchen.

Opening the floor plan allows more natural light to enter the space. This makes for a more enticing appearance and any buyer has room to get creative in their interior design choices.

Make sure that you do your research and ask a contractor or real estate agent for a consultation before you make any changes.

Upgrades to Curb and Exterior

To sell your house for a higher property value it’s beneficial to update the front curb and exterior of your home. This way your house will be super appealing to buyers even before they come into your home.

If your house is well kept on the outside then buyers are going to imply that it will also look great on the inside as well. You will find a big return on your investment if you decide to mow the lawn or put mulch in the front.

The Benefits of Improving Your Property Value

After reading this article you should have a greater understanding of the work it takes to raise your property value. Whether you remodel the basement, fix up the exterior, or open up the floor plan you can’t go wrong.

Do you need help finding a home? Contact us today and see what we can do for you!

Increasing Your Occupancy Rate: How to Market Your Property

occupancy rate

Running rental property is a great opportunity to make income and grow your business, but it’s never been so complicated when it comes to working with tenants and finding new ones. Raising your occupancy rate can help you pay off property, build your profits, and help increase the value of your current rental spaces.

These tips can help you get more applications leading to more tenants and more occupancy in your properties.

Fair Price

It’s easy to panic when you initially or suddenly have a lower occupancy rate, fewer renters than rooms. You might want to raise the price of your available spaces to make up the difference quicker, but that can backfire. 

Right now many people are moving to smaller cities to escape the high rent and the crowds. No matter where your property is you want to make sure you’re rent is fair and equal to the value of the property itself. You’ll scare away more than one possible applicant with a price too high for the space.

Photos and Posts

Some people might walk around the neighborhood to see where the “for rent” signs are posted, but a lot of people are turning to online applications. List your property on places like apartments.com or Zillow to boost views and let people see your property has places available.

Another crucial component is the photos. Make sure you capture the entire apartment, have a few different angles, and include a picture of each room. Let people know what they’re looking at and all of the benefits. Nothing can turn a possible tenant off like a lack of actual photos.

Be Available

This has less to do with marketing and more to do with customer service. Real estate agents and building managers exist to help people and be available. Make sure you are checking emails and returning phone calls. A lot of apartments may find their occupancy rates slipping because of poor service or lack of availability when people tried to reach out.

Online Presence

While tools like a physical mailer campaign can be incredibly useful, the internet is here to stay. Having an online presence, especially a website, can help increase occupancy rate and help you manage tenants.

If people don’t know where to look for your properties or how to reach you, you’ll be missing out on building cash flow that could be easily yours. Include photos of your properties, the amenities, basic rental rules, and how to contact you for a tour or rental contract. There are plenty of easy tools for building websites now so you can have a professional landing page for any possible renters.

Occupancy Rate on the Rise

These tips may feel simple but you’d be surprised how many agents of property managers don’t think to take good photos or post on rental sites to increase the occupancy rate. And once you start getting more applications you’ll be ready to consider how best to choose your new tenants.

If you found these useful, whether you’re looking to buy or sell, we’ve got great resources for you and your real estate needs.

How to Set Rental Price: Your Quick Guide

how to set rental price

Real estate is one of the most efficient ways to cultivate financial freedom. More specifically, owning rental properties can quickly build a significant amount of passive income.

But, not everybody knows how much they should charge the tenants for their monthly rent. Let’s explore everything you need to know about how to set rental price for your properties.

Take a Look at Similar Properties in the Area

One of the most efficient ways to get a good idea of what you should charge as a landlord is to take a look at similar properties in your area. A quick Google search that looks into your local rental rates can go a long way when help determine your price.

Additionally, you could also ask any rental property owners you know in the area what they think you should charge.

How Are the Amenities?

More often than not, the primary index that property owners use to determine rental payments is the square footage of the home. In general, larger homes will always cost more to rent than smaller homes.

But, you should also consider the home’s amenities. Upgraded hardware, new appliances, and whether or not your property is furnished are all factors to consider.

If you own a rental property that has a dedicated parking space and resides within a gated community, you can also integrate this into your rental price.

How Favorable Is Your Property in the Market?

Regardless of the quality of your property, there are certain factors that make a home more favorable in the local market.

The proximity to reputable schools or public transportation, for example, are common attributes that tenants look for. The same can be said about having quick access to your city’s downtown area.

You can likely charge more rent for a smaller property within walking distance of high-quality stores, restaurants, etc. compared to a larger home in a rural area.

Consider the Season

Depending on the region you live in, some seasons are more popular than others when it comes to renting.

In general, summer is the time of year where tenants express the most interest in rental properties. This is typically due to the fact that many people strive to avoid moving during colder months.

Additionally, it’s far easier for families to relocate during the summer since school isn’t in session. As a result, you should be looking to charge more for rent during the summer compared to the winter.

Understanding How to Set Rental Price Seem Overwhelming

The above information, though, will ensure that you choose an amount that leaves both parties satisfied. From here, the answer to how to set rental price for your properties will allow you to catapult your passive income to new heights.

Want to learn more about what we have to offer? Feel free to reach out to us today and see how we can help.

5 Tips for Dealing With Problematic Tenants on Your Rental Property

tenant

Rental properties are a great investment. Maintaining those properties and being an ideal landlord takes a lot of work, however. Although your rental properties could be a great additional source of income, bad rental tenants can ruin it all. 

When you’re faced with a tenant that has trouble following the rental agreement, you could have a disaster on your hands. To ensure your rental properties stay in great condition and that all tenant issues are kept to a minimum, you’ll want to continue reading below. 

Here’s everything you need to know about dealing with problematic tenants!

1. Maintain Written Records

You should have procedures and policies for how to deal with specific issues that may arise. Make sure to have these policies written down and have the tenant sign them, stating that they agree with these policies. 

When an issue does arise, make sure to have copies of all warnings and notices or other forms of communication. Keep records of the dates and times these warnings, notices, or other types of communication were sent out and the reason why. 

2. Stay Firm on All Issues

When you put a certain policy or procedure in place, you need to stay firm on them. If you allow the tenant to pay their rent late without a penalty once, then they’ll expect to be able to pay late again without penalties or fees. 

Deal with an issue the same way each time to avoid any confusion. 

3. Schedule a Meeting to Discuss a Solution

When an issue with a tenant is ongoing and a simple notice or warning isn’t correcting the problem, then consider scheduling a meeting with the tenant to discuss a solution. If the tenant shows up to the meeting, then there might be hope in salvaging the tenant/landlord relationship.

Discuss the issues with the tenant face-to-face and learn if the tenant is willing to make the necessary changes or not. Once you find a solution, you might want to create a contract stating that the tenant will make these changes by a certain date and have them sign. 

4. Begin an Eviction Process 

Sadly, in some cases, there is no way to keep a healthy tenant/landlord relationship. This happens when the tenant is unwilling to follow all procedures and policies required of them and refuses to make any changes. When this happens, it might be best to begin the eviction process.

Before sending out an eviction notice, make sure to know the eviction local laws and landlord rights to ensure you do everything legally. Keep in mind that eviction is a process that’s often complex. Legal help might be in your best interest.

5. Hire a Property Manager

One of the best ways to keep a balance between yourself and your tenants is to hire a property manager. A professional property manager will know how to handle matters with tenants legally. 

You’ll have more free time with rental management there to handle the majority of the problems, and you can have some peace of mind as well. 

Need Help Bringing in More Than One Tenant

When you’re faced with a tenant who just won’t seem to follow the necessary rules and regulations for living in your rental property, it’s time to hire a property manager. Let a property manager do the hard work for you.

Find an agent today to help you place tenants in all your properties!