It’s an exciting and often anxiety producing decision fraught with questions and concerns. Most people who choose not to invest in real property have valid concerns about things like; will my tenants destroy my property, what if they don’t pay their rent and I have to evict them, what about the liability involved in owning investment property, what type of insurance will I need, how long will the vacancy times be in-between tenants?? etc., etc.
Although these are all real concerns that need to be addressed and managed, most people don’t take into consideration the two major factors that can reduce and/or eliminate all of the above concerns. So, what is that you ask?
The location and condition of the rental property; period.
Some new investors don’t realize how imperative these two elements are. Most simply turn to a real estate salesperson to find their perfect investment property. Of course, that does seem logical; if you want to buy a piece of real estate, go to a real estate sales person, right?
Actually, it is only partially true.
You need a team to seek advice from. The first person you need to consult with is a professional Property Manager. Their expertise is to advise you of the areas that are desirable, what condition you should seek out, and to further provide you with a rental assessment in terms of what amount of rent to expect and how quickly a qualified resident can be expected to be secured.
After the area and type of property has been targeted, then a Real Estate Salesperson can help you search for and purchase your investment property.
As professional Property Managers, we have seen time and time again the opposite steps being taken which result in frustration and disenchantment for the new investor. Why is this?
Because sales people are looking for a good ‘buy’ for the investor.
Of course, this IS an important aspect, however a good ‘buy’ does not magically equate to a good ‘rental’ property. Sales people know how to look at the numbers, but they don’t know about property management. When you purchase a rental investment, it is about long term management of the property and the tenant. You need to purchase in an area where qualified renters want to live. The property also needs to be in good condition to compete in the marketplace and win over the most qualified renters who will not only pay the rent on time, but will maintain your investment for you.
Contact us first when you’re seeking to purchase a rental property and we’ll guide you through the steps to ensure a good outcome; one you would hope for. Purchasing a desirable rental property will ensure that you can command a qualified tenant who will be responsible and honor your lease and your property.