Individuals own 41% of rental properties in the United States. If you're a first-time landlord, you're not alone.
Owning rental property can be a great way to build wealth and gain steady income, but it poses some unique challenges. Fortunately, many others have gone before you, so you can learn from their successes and failures.
Performing a rental analysis and vetting tenants are a few of the ways that you can find success as a real estate investor. Here are the essential tips you should follow as a first-time landlord in Niantic, CT.
Perform a Rental Analysis
A big part of your success as a real estate investor relies on how good you are at choosing properties to use as rentals. It's important to do your due diligence whenever you buy a rental property and ensure that it has all of the characteristics that will make it a good investment.
Your property needs to be in a good neighborhood and should fetch a high rental price. Be sure to perform a rental analysis when choosing a property to set yourself up for success.
Screen Your Tenants
Once you have a property in your portfolio, you should wisely choose tenants as well. Take your time when choosing a tenant and ensure that they'll be a good fit for your property.
Look for reliable and steady tenants who will be likely to pay their rent on time. Perform a background check and credit check to ensure you'll get the full picture of a particular tenant. You may want to hire a property management company to help you vet tenants to ensure this is done right.
Maintain Your Property
Part of being a great landlord is taking care of your property and ensuring that needs are taken care of. Keep an eye on your property and consider making regular inspections to ensure that tenants are taking care of it.
You need to protect your investment and ensure that it doesn't lose value. By maintaining your property and inspecting it regularly, you'll ensure that it stays in good a shape as possible.
Improve Tenant Relationships
Be sure that you're maintaining a good relationship with tenants and that you're being personable and understanding with them. Showing that you care about your tenants and occasionally giving them a grace period if they're behind on a rental payment will be appreciated.
Great tenants are worth a lot and if you're caring and considerate, they'll be more likely to renew their lease. This will make things much easier for you and help you avoid vacancies.
Finding Success as a Real Estate Investor
Becoming a landlord for the first time can be challenging, but it can also be very rewarding. Be sure to perform a rental analysis, screen tenants, and take care of your property if you want to build wealth as a real estate investor.
As a locally owned and independently operated office, we're part of a larger franchise that has revolutionized the property management industry for more than 20 years. Consider PMI East Lyme for your management needs in Niantic, CT.
Need a property manager in Niantic? Contact us today to learn more about what PMI East Lyme can do for you.
