About 48% of real estate investors are planning to buy more property. If you're a new landlord, you have a lot of competition. In fact, over 15% of Americans invest in property outside of their primary residences.
As a first-time landlord, it's normal to make mistakes as you learn the ropes. You'll need to learn how to complete a rental analysis, market listings, and collect rent.
Avoid mistakes as a new landlord. Instead, read on for the tips you need for success!
Complete a Rental Analysis
Completing a rental analysis will ensure you set competitive rental rates. When the price is too high, it can scare away prospective tenants. Your rental property will sit vacant, costing you thousands in rental income each month.
If the price is too low, you'll lose revenue. Instead, look at nearby, similar rental properties.
Consider the amenities, square footage, and number of bedrooms. Adjust your rental rate accordingly. A competitive rate can help you attract tenants without costing you income.
If you need help, hire a property management company. Rely on their expertise and resources to set an ideal rate.
Create an Emergency Fund
Accidents are bound to happen. A storm could cause property damage. The property could deteriorate over time and need basic repairs.
Start building an emergency fund right away. Use this fund to cover maintenance, marketing, or other expenses.
Otherwise, consider landlord insurance. Protect your investment property and best interests before there's an accident.
Invest in Marketing
Renters won't realize your property is available if they can't find the listing. Invest in property marketing to reach potential renters. A thorough strategy should include:
- A detailed listing
- High-quality photos
- Virtual or video tours
- Search engine optimization
- Social media marketing
- Paid advertising
If you lack marketing experience, outsource. An experienced property management company can develop your campaigns. Investing in property marketing will ensure the property doesn't sit vacant.
Screen Applicants
As a new landlord, you may feel rushed to find tenants. Do your due diligence first. Thoroughly vet each applicant.
A detailed tenant screening process should include:
- Eviction histories
- References
- Employment verification
- Credit scores
- Rental histories
You can outsource tenant screening to a property management company. Their comprehensive reports will ensure you select great renters.
Choose renters you'll want to keep. Increasing tenant retention rates can maximize your profitability.
Hire a Property Management Company
Ensure your success in today's competitive real estate market. Outsource to a property management company.
They can maintain your rental property, find tenants, and maximize your profitability. Leveraging their expertise will ensure you avoid costly mistakes. Instead, you can explore new investment opportunities while they manage your property.
Become a Successful New Landlord
As a new landlord, it's normal to experience stress as you get your footing in a new industry. You don't have to do it all alone. Consider partnering with an experienced property management company.
PMI Scenic City is a full-service property management company. We have 20 years of experience managing properties in Chattanooga.
Rely on our experience, expertise, and state-of-the-art technology. Contact us today to request a rental analysis.
