For the last five years, the average home value in the U.S. has increased by over 65% according to data from DigitalDefynd. While this might sound like the real estate investor dream, ownership of a rental property comes with more than just financial gain. The real work begins after you've closed the deal.
Managing tenants, setting competitive rents, and keeping up with maintenance all play into the success of your real estate investment. Whether you're aiming to grow your portfolio or make your first property a success, it's essential to understand the next steps after purchase.
Let's explore how to maximize your new investment and set yourself up for a successful property investment journey.
Set Up a Maintenance Schedule
Regular maintenance is key to avoiding expensive repairs down the line. Simple tasks keep your property in good condition and prevent small issues from becoming major problems.
These include:
- Checking HVAC systems
- Inspecting plumbing
- Performing seasonal upkeep
Having a maintenance schedule in place shows tenants that you care about the property, which can increase tenant satisfaction and retention.
Establish a Competitive Rental Price
Setting the right rent is essential for attracting tenants while ensuring your property remains profitable. Keeping an eye on real estate market trends in your area is the best way to set a competitive price.
You can research local listings and use online tools to compare similar properties and analyze trends. Multiple factors can influence rental rates.
These include:
- Neighborhood amenities
- Property condition
- Nearby schools
When it comes to price, if you set your rental price too high it could lead to vacancies that drain your cash flow, while setting it too low can hurt your bottom line by leaving money on the table. It's important to strike the right balance.
Use Property Management Tools
Property management is much easier with the right tools. Today, there are many online platforms available to save time and reduce the potential for human error.
These tools can do things like:
- Simplify rent collection
- Organize maintenance requests
- Keep track of expenses
Having efficient systems in place helps you manage your real estate investment with less stress. Tenants also appreciate the convenience of online portals, which makes communication and payments more seamless.
Ensure Legal Compliance
Understanding and following local rental laws is crucial for a successful property investment. These regulations cover everything from tenant rights to safety requirements. A local property management company can help with compliance, along with other responsibilities such as tenant background checks and accounting.
Ignoring or misunderstanding these laws can result in legal disputes or fines, which can eat into your profits. Make sure your lease agreements are up to date and that you are fully compliant with all regulations to avoid unnecessary headaches.
Next Steps for the Smart Real Estate Investor
Owning rental property can be a rewarding experience, but being a successful real estate investor requires more than just owning the property. It's about smart management, staying ahead of maintenance, and understanding your market.
At PMI Foothills, we want to help you protect your investments while maximizing profitability. We offer fast response times to any client queries, combined with state-of-the-art online portal technology that lets you keep track of your property's performance in real time. Contact us today to learn how we can support your real estate investment goals.
