Looking for a smart way to make a passive income in this uncertain time? Rental properties are an excellent source of supplemental income. Of course, owning a rental property isn’t a small undertaking, but it can be economically viable with the right planning, safeguards in place, and the help of a trusted property manager. With the three, you can protect your investment and set yourself up for a successful experience. Some of those safeguards include choosing a smart property to rent out, providing proper tenant screening, and utilizing solid management. Each of these things will require a little bit of homework on your part, but can absolutely be done.
Choosing a Smart Property
When selecting which property you should turn into a rental, you need to think about a few things. First, check with the city and the HOA. Are rental properties allowed in this neighborhood? If you rent this property out, will people be able to afford it? Remember you want to turn a profit as soon as possible. You also want to consider the taxes on the property, cover the mortgage payment, and any other extras you might have. Given these things, how much will you need to charge? How does that compare with other rental properties in the area? As the landlord, will you be handling repairs on your own or using another service? If you sell your investment, what does that look like? Create a list of questions that you yourself can answer before choosing a property. Of course, invest in a property that makes sense for the tenant you’re looking to attract. If the property isn’t near to you, or if it requires consistent upkeep, it’s best to hire a property manager from the start. Allow a manager to work the day to day when you’re miles away.
A huge part of your rental property success will depend on the type of tenants you allow to occupy your space. Be sure to do a thorough background check, ask for references, and interview said potential tenants, before giving them the keys. This can help you to find out if there have been any discrepancies with previous landlords or property buildings. While you’ll have a contract in place, in the event that tenants don’t pay or damage the property, selecting trustworthy tenants can help you avoid a lot of work and a serious heartache. Of course, you may not have the time to run background checks on numerous applicants. Consider hiring a property management company to take care of applications and contracts for you.
There’s nothing wrong with running a property on your own, but the task is rather daunting. When you consider that you may be embarking on this journey while still working, running your own household, or managing several properties, hiring a property manager, or retaining the services of a property management group is a smart choice. From handling applications and conducting background checks to creating contracts and scheduling home repairs, having another handle the heavy lifting can make earning a passive income an enjoyable experience.
If you’re ready to make the most out of your investment, the team at Rhino Property Management is here to help. We can help you take your smart property investment to another level. As property managers, we have the experience to help you navigate the ins and outs of being a landlord, helping you make smart decisions that will benefit your pockets and tenants for years to come.