There are over 10 million rental property owners in the US.
Becoming a real estate investor is no walk in the park. Aside from the financial aspect of purchasing an investment property, you've got to make sure it becomes a viable rental property that earns you money over time.
There's a lot of work to do, which is what we're here to discuss today. In this post, we'll tell you what the first steps are after purchasing a rental property. When you do it right, there's nothing more gratifying than owning a rental property, so read on and let us get you on the path to success.
Learn About Your Property
The first thing to do after you purchase an investment property is learn about the property and the local housing market. If you're going to rent the property out, you need to give it a thorough inspection so that it's safe and ready for renters.
Learning more about the Cleveland real estate market will inform how you proceed as a landlord. Notably, it'll tell you how much you can charge for rent. Look for similar properties in your neighborhood and price your rental competitively.
Market the Rental Unit
Marketing your apartment to prospective renters is crucial to avoiding vacancies, which are every property owner's worst nightmare. Take plenty of professional photos of the unit so renters can see it in minute detail before applying.
You should also take the time to write up a thorough property description. The more descriptive you are about the area, the property itself, and the rules of the property, the clearer things will be for applicants. Write up an application for people to fill out so that you can screen your tenants.
Tenant screening is one of the most important things you do as a landlord. It's important to perform background checks on every applicant to ensure they're going to treat your property right.
Do a criminal background check, credit checks, employment checks, and reference checks. In many ways, touching base with an applicant's former landlords is the best way to determine how responsible they are, both in paying rent on time and caring for the property.
Hire a Property Manager
One important thing you need to think about is the type of landlord you want to be. Will you be hands-on, keeping a close eye on the property, collecting rent each month, and responding to tenant requests? Or, would you rather be hands-off and treat the property like a true investment?
If you choose the latter, it's best to hire a property manager. Rental property management takes care of every aspect of being a landlord, from screening tenants to eviction protection. It allows you to enjoy all the perks of owning a rental property without any of the work.
Become the Best Real Estate Investor You Can Be
If you take these tips to heart, you can start a lucrative career as a real estate investor in Cleveland. Being a rental property owner can be a ton of work, which is why it's a good idea to consider hiring property management.
At PMI CLE, we're Cleveland's top full-service property manager. To learn more about our services and how we can help you maximize your investment, contact us today.