Home values are continuously rising in the United States, and the closer you are to metropolitan areas, the higher and higher rent becomes. With the massive tech expansion and constant growth, this only means great things for landlords. As homes and commercial properties rise in value, property owners are likely to make substantial profits through rental income, and if they ever decide to sell the property, sale price.
While the current housing market is booming, due to past financial downturns it is smart to keep in mind a few things when considering investing in property. First of all, make sure you know what and where your buying. Research the area, are their businesses nearby, growing companies, safe neighborhoods? These are the questions that will help you ensure you are investing in a growing area. Additionally, make sure you properly inspect the property. How old is that property, has it been a rental before, are there potential geographical issues? Make sure that you know what you are investing in.
One of the foreseeable problems investors tend to not think about is their own protection. In many cities, there are tenant laws, that you will not only need to abide by for the time being but could be held to for a decade. Make sure you study the area, the buildings, and properly weigh all of your options. Be proactive in seeking out potential downfalls, or battles, to ensure that you are highly prepared and no surprises will be coming your way.
Once you have secured a location, and feel confident in your decision, make sure to get your ducks in a row. Create a schedule, an estimated expense tracker, expected income timeline, and organize your rentals. TrueRent, can help keep your property stay on track, providing Rent Roll, Income Statements, Owner Reports, Work Orders and much more. Our Property Management Software will help you keep track of the books while simplifying the process for both yourself and your tenants. By putting together a plan, you will be treating your property like a proper business.
All-in-all this is an investment, and like any investment do diligent research before making a decision. Rental properties are a great source of income, and if handled with care, consideration, and thoughtfulness, this can become your new full-time business.