Neighbor News
Curtis Roddy, CEO @ RealTrac Info Systems, on Rental Properties
Buying Your First Rental Property
Deciding to invest in your first rental property is a big step, with lots of moving parts that will need to be covered. Right now, home prices are on the rise in most parts of the country which means that rent is also being raised for most tenants. Before you jump into your first rental property purchase, make sure you cover these crucial bases.
Find Your Property
Before you can purchase your first rental property, you first have to find one that meets all of your needs first. To determine the best location for your rental property, it helps to consider school districts in the area, neighborhood safety, public transportation, access to shops, etc. These all help to attract long-term renters in the area looking for these same attributes. Once you find the property right for you and your finances are in check, you can move forward with the purchase.
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Do Your Research
After you have purchased your new rental property and are ready to move forward with finding tenants, it’s time to do some research. Check out rent and home prices in your area, and compare them with your property and its amenities, and even consider meeting with a real estate agent in the area to assist your decision. This allows you to make a calculated decision on what the market suggests, and determine a price that will also drive profit.
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Determine Your Role
Once the sale is establishing and you’re ready to begin renting out your new property, it’s time to determine what your role is going to be. Some investors choose to be landlords themselves, and deal with the day to day needs of the building and its tenants. If this is not a feasible option in terms of location or a full schedule, another route you can go is using a property management company. A property management company would facilitate everything for you, including the handling of tenant complaints, maintenance needs, and rent payments. While this is the more expensive option, it is also the most convenient option.
Originally published at curtisroddy.org on November 7, 2018.
