Quite all right, real estate is a good investment decision you should make. In fact, in the recent writing by Bankrate senior reporter, James Royal, rental housing was ranked amongst the 11 best investments for 2022.
You should invest in Real Estate rentals, right away? Nah! Real Estate tycoons, like Donald Bren, became strategic before diving in with their hundreds of thousands of dollars.
Don’t let inexperience get the best of you as you dive into the world of real estate investment. You should make the choice of investment in a rental property with a strategic plan.
These are 3 rental property investment strategies you should never ignore;
You need to take in tenants that are likely to stick around. To get this, you must critically screen tenants.
One criterion to determine a stable tenant is to look out for their prior address and employment history on their application form. Do they move or switch jobs often? If they move often, this pattern is likely to continue and you will soon have a vacancy on your hands again.
screening tenants help you retain tenants likely to stay year after year to grow your investment.
Secure your investment
Regions surrounding a city hold opportunity of high demand for your rental property. To consider a locale where the population is growing and a revitalization plan is underway can represent a potential investment opportunity, as well.
For a favorable supply and demand on your rental property, look for a location with low property taxes, a decent school district, and plenty of amenities, such as restaurants, coffee shops, shopping, trails, and parks. In addition, a neighborhood with a low crime rate, easy access to public transportation, and a growing job market.
This will transcend to a larger pool of potential renters.
It’s normal to expect cases of wear and tear in a rental property. At the same time, the level of functionalities of property amenities determines the level at which prospects become attracted to your home.
To this effect, set money aside for the maintenance of your rental property, each month. It’s good to put at least 10% of your monthly rental income into repair reserves. You may want to set aside more, depending on the age and condition of the property.
Retaining a worthwhile investment in rental property demands that you strategically keep reserves.