Springfield is a great place to own a rental property with 58% of the city's population being renters.
If you're a first-time landlord, the whole process of buying a property and turning it into a successful rental is daunting. There's a lot that goes into being a landlord, and if you're going to maximize ROI in real estate, there are certain things you must do. This includes rental analysis and tenant screening.
In today's post, we'll go over a few key tips that'll help you succeed as a property owner. By implementing the right property investment strategies and managing your rentals well, you can thrive in a competitive market. Keep reading and get ready for your new life as a landlord.
Perform a Rental Analysis
Typically, you'd perform a rental analysis before purchasing your property, but you can do it after as well. A rental analysis helps you with rental property pricing, allowing you to attract the right tenants and maximize ROI.
There are a few different rental valuation methods, but the most important thing is market research. By looking at other rental properties of a similar size in similar areas of town, you can get a good sense of what you should charge.
Arbitrarily setting your rental rates will either leave money on the table or result in rental vacancies. Always do this before trying to find tenants.
Market the Unit
The key to finding great tenants comes down to two things: rental marketing and tenant screening.
When you put effort into marketing your vacant units, you'll be able to attract the right types of tenants. It starts with a thorough property listing that describes the property, the local area, and the ideal tenant you're looking for.
You also need to take plenty of detailed photos of the unit to show it in the best light. If need be, you can invest in things like SEO and paid ads to cast as wide a net as possible.
Tenant Screening
Once you've got a group of applicants, the next step is to screen them to find the perfect one. This involves performing criminal background checks, credit checks, and reference checks.
Together, these will paint a picture of a prospective tenant's character and financial situation. When you have a great tenant in your rental property, your life as a landlord becomes much simpler. Failing to do your due diligence will result in stress and lost money due to rental vacancies.
Property Management Is the Key
Taking these tips to heart will help you be the best landlord you can be while also maximizing your rental income. To recap: you perform a rental analysis to properly price your unit, then market your property to find applicants, which you then screen to get the ideal tenant.
If all of this sounds like a lot of work, hiring a property manager is a great option. At Hunter Property Management, we can help you navigate the trials and tribulations of being a landlord in Springfield. Contact us today to learn about our services and how they can help you thrive as a landlord.
