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Investing in a Rental Property: Tips for First-Timers
Investing in a property is a big decision, but many Americans have gone that route in recent years, and for many reasons: not only is it a great way to diversify your portfolio, and if you decide to rent it out, it’s a way to make income throughout the year as well. If you can find a property — or if you already own one — that’s in a great location and has a lot to offer someone who is traveling or vacationing, you’re already several steps ahead of the game because location is everything. There’s a lot to consider, however; investing in a rental property takes a lot of time and hard work, especially in the beginning.
A few things to take into consideration include whether there are parks, restaurants, and attractions nearby, if the spot is popular with tourists, and how much similar homes are renting for in the area. You’ll want to do your research on the neighborhood and find out what renters are looking for, design-wise; are families attracted to the area, or is it a youthful spot full of nightlife? These details matter when you’re trying to find clients.
Here are a few things to consider.
Do the Leg Work
Investing in a property in order to rent it out takes quite a bit of work and research; you’ll need to think about the location if you don’t already own the property, as well as find out what nearby rentals are going for. Think about the fact that homes with great views that are close to spots like parks, lakes, or the ocean are the ones that can fetch quite a price, and if you decide to sell at some point down the road, you’ll have an easier time finding a buyer. Do a little homework, in the beginning, to nail down the details; you’ll thank yourself later.
Consider the Profitability Factor
When you’re renting out a property, it’s essential to make sure you consider how profitable it will be by looking at the neighborhood, the amenities you can offer tenants, and the details, such as what the weather is like year-round. If you invest in a home that you can rent out to skiers in the mountains and get a good deal, consider that you’ll have to take care of the upkeep and repairs on a home that could potentially have damage from snow, ice, and wind. If your year-round home is far away, it may be a hardship to take care of your rental. Make sure you understand the true costs before you jump in.
Create a Web Presence
Creating a web presence is essential if you want to attract customers to your rental. From giving clients a way to communicate with you to having a space to show off your rental property using photos, having an engaging website and active social media accounts will go a long way toward helping you find the right people to pair with your home. So, look for a web platform that fits your budget but still offers everything you need, and create social media pages for your property that will help you connect with potential clients.
Give Them What They Want
Renters in different areas of the country will be looking for different amenities, so it’s important to do a little homework online to find out what you should offer in your rental. From updated bathrooms to extra sleeping areas, the things renters will shell out big bucks for vary depending on which state you’re in. Think, too, about how the home’s resale value will be affected.
Investing in a rental property is a great way to earn extra income while taking steps to make a solid plan for the future, but it can be an overwhelming job if you aren’t properly prepared. Make sure you understand your legal obligations before you get started, and think about the easiest ways to stick to your budget when it comes to furnishing and designing the home. With a good plan, you’ll be on your way to booking your first guest in no time.
This post courtesy of:
Suzie Wilson ⎸info@happierhome.net ⎸Happier Home
Investing in a Rental Property: Tips for First-Timers
