While property investments are one of the most popular investment strategies, they can still be daunting for new investors. Ideally, you don’t want to approach the real estate market without doing your research first. This can help you understand the property values and the average rental income that similar properties have.
As a landlord, you will need to ensure someone is available to handle tenants’ queries, screening, and visits. Therefore, you might already be looking into property management services from realtors. But what are the top 5 tips experienced landlords wishes they knew when they first started? We’ve asked, and here are their answers.
#1. You don’t need to buy an expensive property
Contrary to common belief, an expensive property is not likely to generate the highest profit. Indeed, while your monthly income may be high, your expenses and mortgage can be equally as high.
Therefore, it can be more beneficial to focus on affordable and budget-friendly homes such as Top Notch Homes, which will rapidly recover their price. You can start earning money from your rental venture more quickly.
#2. Tenants have amenities that are more desirable than others
According to a report from NMHC, almost 100% of tenants want good cell reception in their rentals. Many tenants also expect high speed internet at home. Prospective tenants are likely to lose interest in a property if they find out that there is no fast connectivity option available from local suppliers.
Privacy also plays a huge role for your tenants. If you have an apartment, your tenants will be more likely to stay long-term if the rental has soundproof walls.
#3. Focus on pets
More and more tenants have a pet. Therefore, they need pet-friendly policies. Pets provide a source of emotional support for countless people. More and more tenants consider registering their pet as an emotional support animal to be able to bring it home. Emotional support and assistance animals are exempt from tenancy policies.
But, most importantly, tenants who have a pet and are allowed to keep their pet are more likely to stay longer and look after the property.
#4. Smart home technology
Introducing technology inside your rental can be a game changer. Smart tech is especially popular among tenants because:
- It can help them monitor energy consumption
- It can help reduce energy bills
- It can increase comfort and convenience levels
- It can make the rental more desirable
Additionally, smart technology can also give some of your tenants more independence and flexibility in their day-to-day lives. Someone with a physical disability can preserve their independence and lifestyle within a smart home. Elderly tenants can also use smart technology to manage their routines, from automated light to alerting relatives in the event of a fall. Bringing a smart home hub to your rental can make the property more accessible to a variety of tenants.
Investing in a property for rental purposes is a completely new adventure, and you will learn new skills along the way. But you can also avoid costly mistakes by learning from the pros. Seasoned landlords warn against unnecessarily expensive property and pet-unfriendly policies. Many people that putting the needs of their tenants first can help unlock significant ROI.