Purchasing a real estate investment property is a great way to secure a steady stream of income. Before you decide to become a full-time property investor, learn how you can maximize your investment and get the most money possible.
Understand the law
Before purchasing your first piece of real estate, research what property laws are like in the area. Different states have different rules on ownership, rentals and subleasing of properties. Learn what the process for eviction is and what rules there are about how many families can live on a single piece of property. Become well-versed in the real estate laws related to the area in which you’re buying property.
Have it in writing
Take some time to draft up a comprehensive lease before letting tenants move into your property. A lease will help you to protect you in the case your tenant tries to claim they were never informed about specific rules or requirements. Whenever possible, use official forms to manage tenant relationships, including move-in and move-out documents.
Learn the market
Housing prices vary significantly throughout different cities and states. What may be a fair price in one area, may be outrageous in the next. Research what kind of houses draw what asking price. Learn what the going rate is for a property similar to yours. Talk to other landlords you know in the area and ask how much they’re getting for their property.
Know your role
Depending on the state, landlords have predesignated responsibilities to their tenants. In most places, landlords are responsible for making repairs and performing general maintenance. Make sure you’re staying on top of your duties as a landlord. Otherwise, you’ll have to deal with unhappy tenants.
Find the right tenants
The right tenants will make your role as a landlord much easier. A happy tenant is more likely to stay in a property for longer and less likely to have complaints. One way to attract high-quality tenants is to have a nicely renovated piece of property. If your property is in a desirable part of the neighborhood and has a new and comfortable interior, you’ll most likely attract tenants who care about their living space. They’ll keep the property in good shape, which will make your job easier when it’s time to find a new tenant.
This article was originally published on Medium.com.