As you've been dipping your toes into the property investment pool, you've probably learned a lot already about the many faces of investing. Sometimes the water can be shockingly cold—and ruin the experience.
Here at Verandah Properties, we want your experience as a property investor to be incredible! As both an Orlando realty and property management company, we know that seeing positive returns from your hard work and time investment can help carry you through the challenges that make you regret trying to swim.
Don't give up! Here are some tried-and-true tips from the experts in Orlando property management for new investors. We hope that by offering these strategies, your initial experiences with real estate will be positive—and fuel your financial growth.
Investors shouldn't have to experience getting burned by a bad property to experience success! Take advantage of our expertise to dodge some of the most common mistakes that early investors make when trying to grow their portfolio in Central Florida.
1. Pick a Property That Acts as a Launchpad for Growth
It may be tempting to purchase risky properties at first—the kind that come with meager price tag, and a lot of fixer-upper potential. While these properties offer excitement and possibility, they also provide unexpected setbacks and expenses.
- When you purchase a turnkey property, you know upfront what the cost of the investment is.
- While no home is without maintenance costs, a high-quality, move-in-ready property offers far less uncertainty.
- Working with real estate agents that will help you find a great investment property that is likely to appeal to renters can help you get started with a "sure thing."
- There will be more than enough time for house flipping once you've got a steady stream of rental income!
Picking a sure-fire property from the start shields you from risk early on in the investing process and lays the foundation for future investments at a large scale. They also provide steady income that shields you during riskier investments down the line.
2. Aim for Features Renters Favor
As you evaluate features of a potential investment property in Orlando and make your choices before renting it out, think about things that matter to your rental population. For instance, a house without appliances might be attractive to homebuyers—but would probably turn off renters. A lack of appliances means an additional cost to rent, and buying is even harder; it's a safe bet most of your tenants won't want to move that washing machine later.
Working with a professional in Orlando Property Management can help you hit all the key basics that your investment property picks should have, as well as some of the favorite features renters in your area seek, both before and after you choose to purchase a particular property. Property management services in Orlando extend far beyond the day-to-day management of your properties: the insight a property manager provides can help steer you away from upgrades that bring no value to your portfolio.
3. Pay Attention to Market Analysis of Location
One of the most significant factors for renters is the location: proximity to green spaces, work, grocery stores, and quality schools makes a huge difference in what you can charge—and how low your vacancy rate will be.
As you shop for a first or second investment property, put a premium on location, and learn which areas matter to you. You can give your real estate agent a list of areas where you want to see properties, which can allow them to notify you the second something hits the market, or even before.
Remember that location matters: when you look at properties that tick all your boxes but are located in areas where rental vacancy is high, it's worth waiting for the right property in a more-marketable location. When you work with only the best in Orlando property management, you can often gain access to this cutting-edge research for free!
If your property manager is both an Orlando realty and property management company, you've hit the jackpot on efficiency when it comes to finding your next property!
4. Screen Tenants Legally and Thoroughly
- Even if you are excited to get a tenant into the property quickly, take time to do your due diligence. Screening is your first line of defense when protecting your investments.
- When you have multiple tenant applicants, make sure you are avoiding discriminatory practices and bias in favor of relevant details applied equally across all applicants.
- This means background and credit checks to discover if applicants have a history with late and missing payments, as well as investigating previous landlord references regarding any property damage or nuisance behavior on the property.
- If every applicant has substantial red flags, consider a change in the rental rate or advertising more widely; the costs of having a problem tenant who has a track record of property damage are much higher than a few more weeks of looking for the right resident!
5. Orlando Property Management Offers a Leg Up!
As a skilled Orlando property management company, we have the insider experience to know that a lot of the early, rookie mistakes in property investment come from not following the above tips. The truth is that what works in one market may not work in another—but the above tips are universal.
As a Downtown Orlando property management company, we've seen the area grow—along with the potential for investment properties here, and we know what works when it comes to long-term investment holdings. If you want to avoid having to do piles of market research yourself and instead work with experts, Verandah Properties is ready to help you achieve your goals!
A great place to start is with our FREE guide to growing your real estate portfolio in Central Florida! We've put together a great collection of information for investors looking to expand their holdings.