Do you currently own a residential investment property, or would like to? This is a great way to earn an additional income and see long term growth. However, as an investment property owner, it is important to think about your bottom line. Every dollar and upgrade counts. This is why it is best to make sure you are on top of everything and have looked at every avenue to make sure your rental is profitable. To get started, learn some of the best ways to become profitable through the area you have rentals to home improvements. It is also important to know the benefits of a property manager.
Tips for the Area
As you begin your search to find a residential property to invest in, finding the right area and hitting a few other marks is key. First, you want to find an area that you know will attract long term and reliable tenants. Look to neighborhoods that are either established or up-and-coming. The great thing about up-and-coming areas is that you are almost guaranteed to make a great return on your investment once the area becomes a hot commodity. Next, think about how much property taxes will cost in the area and how that will factor into your budget. Last, look at your competition. Before setting on your prices, do your market research to make sure you are comparable to other rentals—but profitable at the same time. More tips are covered in the top 10 features of a profitable rental property
In order to be profitable, you will need to have a home that’s attractive to prospective tenants. After doing your market research, you will know what is being offered and how much they cost. If other homes and rentals in the area have upgrades, such as stainless steel appliances, granite counters, hardwood flooring, etc., it is important to either do the same or price your unit properly. Next, before tenants move in, do your best effort to repair any damage before opting to replace anything. This will help with cost savings. For long term savings, consider investing in energy efficient appliances and features with the energy-star rating
. From appliances to faucets, a few small changes can really add up over time.
Benefits of a Property Manager
When you become a landlord, there is so much work to be done. Not only will you have to prepare the house, make any needed repairs, clean, etc., but you will also have to market it, rent it, and then maintain it as needed. The process starts all over again when a tenant moves out. To help you manage your property, consider working with a property management company. They can assist with any step in the property management process and allow you to be as hands-off as you need to be.
Trust the knowledgeable experts at DenCo Property Management. When you finalize your investment, be sure to read these tips for working with your Denver real estate tenants and using a property manager
. To get started, DenCO Property Management and Sales can help. Call us today at 303-722-9688 to get started.