By Megan Cooper
Are you thinking of investing in rental property? The real estate industry is lucrative, and many landlords have found success by owning investment properties. According to IRS statistics, about 10.6 million people filing taxes claim rental income as a revenue source.
If you already own rental property, you are probably familiar with the ins and outs of the business, but like most landlords, you sometimes face hard-to-fill vacancies.
Whether you are a new or seasoned landlord, you can take steps to make your property attractive to prospective tenants. You can also upgrade your business process to make property management easier and more efficient. Learn more below -- courtesy of ILoveMiamiLakes.com
1. Make Essential Repairs
If your property has glaring problems, you don't have much chance of attracting renters until you make improvements. Inspect the major components and look for areas that need attention:
● Heating and air conditioning system
● Plumbing
● Electrical system
● Roof, doors and windows
If you rent a property with unfinished repairs, they will result in service calls from your tenant anyway, so fix them now. Minor details matter, too. Do you have stained carpet, cracked plaster or a dripping faucet? Make repairs to these areas.
And don’t forget your property’s exterior. Beautifying and maintaining your lawn will attract renters and keep future tenants happy. If you don’t have time to fix up and maintain your property’s lawn on your own, search “lawn care near me” to find reputable professionals in your area who can handle the job for you.
2. Consider Amenities
In a competitive rental market, your property needs to stand out. You can raise the appeal by adding the amenities renters want:
● Hardwood floors: If they are hiding underneath carpet or linoleum, consider uncovering and refinishing them.
● Appliances: Invest in a new, energy-efficient refrigerator, stove and dishwasher.
● Additional storage: Try adding a walk-in closet or outdoor shed.
● Washer and dryer: Renters find on-site laundry amenities attractive.
● Safety features: A working smoke detector is required, but you can consider automatic door locks, security cameras and fire sprinklers.
3. Market Effectively
The longer your property sits vacant, the more income you lose, so finding the most effective advertising methods is vital.
Putting a "For Rent" sign out front is tried-and-true advertising. Potential renters can screen the location and outside view of your property before calling, saving you time. The modern day version of this is listing your property for a small fee on property rental websites, where you can point out its amenities, any rules you have for the property, and its proximity to local attractions. Locally, you can also list your property for free, on the Lease Buy Owner page, on iLoveMiamiLakes.com. When you do, your property will also be marketed on social media.
Word-of-mouth referrals are another excellent form of marketing. First, they're free. Second, you may find tenants through friends or acquaintances who can vouch for them. Third, if you have other renters, you can ask them to recommend you.
4. Consider Business Methods
Before buying your first property, estimate your expenses. You'll need to plan for:
● Rental income taxes
● Insurance
● Maintenance
● Utilities
● Business permits
The rent you charge will depend on your property's location, size and type of home and the improvements you've made. To learn about the latest rental rates in Miami Lakes or other South Florida locations, contact us HERE and tell us about the number of bedrooms, baths, living area square feet and the location of your rental property. We will email you our findings, so you can rent your property for top dollar.
You'll also need to decide if you plan to be a hands-on property manager or hire a company to take care of it. Managing the property yourself can save you money. You won't pay management fees or maintenance crews, and you can have more control over who rents your property. However, hiring a property management company can save you time and headaches, as the company handles screenings, maintenance issues and marketing details. According to MySmartMove, almost half of landlords manage their own properties.
You can protect your personal and business assets from potential lawsuits by forming a limited liability company. You can form a Florida LLC with the help of a lawyer, or to save money, you can use a formation service. Check out florida-llc.net to learn more.
Owning rental property comes with some risks and a bit of work, but it can be very financially rewarding. If you plan your purchase and business strategies, make improvements and repairs and use effective marketing techniques, you can enjoy the benefits of your investment and secure your financial future.
Megan Cooper is a special contributor to iLoveMiamiLakes.com . She writes about home improvement, DIY projects, real estate and more. Visit her website https://reallifehome.net/ for tips, which will improve your ownership experience and quality of life.
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