The ability to purchase an investment property allows you to make truly passive income. You could be a hands-on landlord or you could opt to enlist the help of a property management company. These companies do background rental checks on potential tenants and have marketing strategies in place. These companies might charge far more in rent than you would have if handling it personally. The fees for these companies are not as high as many people think when you consider the benefits of utilizing their help. Nobody wants to argue with tenants over rent and these companies ensure you get the best renters possible.
Find a Property in a Part of the City With Entertainment Options
Most people want to live near entertainment options in a town/city. Owning a property in this area can allow you to rent long-term or utilize a platform for short-term rentals like Airbnb. Rental prices will be competitive in these areas so make sure you set your rental price at a reasonable rate. You want zero vacancy which is why you can figure out long-term leases with renters that you do not want to lose. Take the time to research the local area before buying an investment property as you will not regret it.
Partner With University Foreign Exchange Programs
If you live in an area near a college, you likely will have no issue renting out your investment property. The issue is when you have college students you are likely going to have damage to the apartment or home. Partnering with university exchange programs is important as these programs usually have someone check in on the students. You can receive top rental prices while leasing out the home to these programs. Take the time to research programs in the area as there might be graduate school programs where you can find renters.
Renovate and Improve Where Possible
Renovating your investment property is wise but this does not mean it needs a complete remodel. Something as simple as having a professional reglaze tile showers can make a bathroom look newly renovated. Refinishing in the bathroom is also important and is far more affordable than doing a complete renovation. Take time to list out improvements that you would like to make and see how this would impact the rental price of the property. Flooring is also very important to renovate as carpet simply is not in style. Finding another option that offers durability at a reasonable pricer is important. Faux wood tile gives the classic look of wood flooring without the issues of scratched or buckling floors due to leaving puddles from pets or spills. You should take a look at the other rentals in the area to ensure that you have the most attractive one at the rental price point. You might find that you can increase your rental prices if the market in the area is extremely competitive.
You can receive a quality rental price on your investment property by following the tips above. The right investment property can add capital to your income year after year.