Make More Money From Your Investment Property Business With These 4 Tips – The opinions expressed by the author in this and all guest blogs are not necessarily those of Gainesville Restoration and Remodeling.
Make More Money From Your Investment Property Business
Buying real estate is a lucrative way to grow your money and diversify your investments. Perhaps the best way to make money from your investment property in the long term is to rent it out to interested tenants. However, there is more to the process than simply buying a home and then immediately putting up the first renter you can find. By following a few best practices in your budding investment property business, you can find even greater financial success in this profitable venture.
- Repair and Deep Clean Each Property
Any home that is previously lived-in is likely to show some signs of wear and tear. Your first priority upon purchasing an investment property is to conduct a thorough inspection and address any damages which might be a liability later on. Common repair expenses can include roof renovations and electrical repairs.
It is also a good idea to deep clean the entire house, even if the floors and walls appear passable to the naked eye. When potential tenants come to view the home, their willingness to rent may go up dramatically just by noticing a freshly-cleaned carpet.
- Add Attractive Modifications
Beyond what is strictly necessary for the sake of safety, there are other touch-ups you can make to your property to increase its value to renters. Real estate experts explain that some of the best property upgrades are the ones that prospective tenants will notice right away, such as landscaping or even a literal fresh coat of paint.
Accessibility is another huge priority and one that can broaden the pool of potential renters who might show interest in your property. Start by constructing an entrance ramp for easier access into the home, and widen doorframes throughout the house if they cannot already accommodate wheelchair passage.
- Market Your Property to Potential Tenants
An appealing property in a prime location might eventually attract renters on its own merits, but the time spent waiting is time that your property could be generating revenue. To bring in tenants quicker, and higher-quality tenants at that, you need to properly market the property.
Putting up signs or flyers in the local area is a tried-and-true method of raising awareness. You can also find potential renters through social media networks and email your flyer directly to them as a PDF file. If you want to learn how to edit a PDF, use a free tool. Then, you can make additional changes or add drawings for emphasis before downloading the finished document and sharing it.
- Write a Business Plan
While it’s true that you can make a decent property by occasionally flipping houses or by owning one or two rental properties, your investment property venture can become a consistently reliable source of income if you treat it like a full-fledged business. To that end, you need a detailed business plan that outlines your long-term goals, your funding needs, and whether you will manage your growing real estate property yourself or with the help of a property manager.
As you move forward with formalizing your business, you should consider establishing a limited liability company to protect yourself and your assets from the possibility of litigation. You can form an LLC by hiring a lawyer or by working with a more cost-effective formation service.
Investing in real estate is a prudent decision for anyone with the finances to spare. To truly bolster your income in the long-term, though, you can take the appropriate steps toward turning your side investments into a successful investment property business.