As of the last reliable census estimate, 36% of households were renters. This is a good time to start investing in rental properties! 

When you start investing in real estate, you have to learn a whole new set of skills. It’s not the passive income that many people think that it is.

We’re here to offer a few tips when it comes to buying real estate and managing it once you have it so your investment is successful. Read on to learn a few property investing tips. 

1. Know Your Budget

Many people think that they can start investing in property for only the cost of the home or apartment building that they buy. This isn’t really true unless you buy a turnkey property. Even then, there are extra expenses that you’ll have to plan for once you get your property up and running. 

When you’re buying a rental property, make sure that you consider the costs associated with repairs, renovations, and basic fees. Don’t expect to buy a cheap “fixer-upper” and be able to rent it out with no updates. Sometimes renovations and repairs cost more than the home itself. 

You also need to factor in a marketing budget, maintenance, taxes, and more. 

Because of this, it’s best to start small unless you have a large sum of money to work with. Start with one or two single-family homes or a single manageable multi-family property. 

2. Keep Your Tenants Happy

Your tenants are paying your bills, so make sure that you’re doing everything in your power to keep them happy if you want to get the most out of your investment. Unhappy tenants will not renew their leases. 

This means that you should be responsive and that you should keep an updated and well-kept property. Remember that renters can always go elsewhere. 

3. Maintenance Is Key

Too many first-time property investors neglect their properties until a tenant requests maintenance. Believe it or not, this will cost you more money in the long run. 

You should be doing routine maintenance on your property. Make sure that your plumbing and HVAC systems are in good condition at least once per year so you can avoid serious maintenance emergencies in the future. 

You should also be responsive to maintenance requests. Even a small leak can turn into a big problem if it isn’t addressed quickly, especially if a tenant didn’t notice it right away. 

4. Hire Professional Help 

Owning real estate that you rent out is a lot of work. If you’re feeling overwhelmed, hire a local property management company to help you out. 

Property managers are able to handle tenant communication, maintenance, marketing, and more. They will make your investment income (almost) passive.

Is It Time to Start Investing in Real Estate?

Don’t be afraid to start investing in real estate. It’s a great way to get a second stream of income going and secure your financial future. With that in mind, it isn’t as easy as it looks, so be sure to keep these tips in mind.

Good luck with your new investment!

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