If you have an investment property or intend to buy one soon and are planning to rent it out, keep your renter in mind. Making repairs and design choices for your potential renters and not just to your own tastes can open up your market and help you start earning substantial income.
The first thing to consider is the general condition of your house. State laws require essential systems, such as plumbing, electricity, heating, and cooling, to be in good standing before your tenants move in. The structure itself and the roof must also be stable and safe. While hiring professionals to check and repair these systems may take a good chunk of your budget, they’re the most important in terms of safety.
Amenities to Splurge on (or Avoid) for Renting Your Property
First off, take a tour of the property, and replace any fixtures that are in disrepair. This includes squeaky hinges, loose doorknobs, and leaky faucets. They don’t cost much to replace but help the place look great. Next, add a fresh coat of high-quality paint. Choose neutral colors that go with any style, such as cream, white, or gray.
Large-scale renovations aren’t generally necessary and come with a hefty price tag. Instead of remodeling the kitchen, try painting cabinets or just replacing the countertops. A small update has a huge impact. Don’t spend money replacing appliances unless they’re already broken. You don’t need the most expensive versions, as these don’t generally add anything to the rent you charge. Just choose standard, reliable models.
Also, invest in refreshing flooring by steam cleaning carpets or polishing wood floors instead of replacing them. If replacement is necessary, choose a hearty and inexpensive option that won’t be too painful to replace in a few years’ time.
Managing Your Rental Property
You have two main choices when choosing how to manage your property: hire a property manager, or do it on your own. Being a landlord is a 24/7 job. Unless you’re ready for midnight complaints and always being on call, the investment in hiring a property manager is absolutely worth it. The fees charged are generally minimal for the value and peace of mind they provide.
Protecting Your Assets by Forming an LLC
If you’re starting a business renting out investment properties, consider forming an LLC. By registering as a limited liability company, your personal assets will be protected in case legal action is brought against you. To set up an LLC, you’ll have to complete several steps, including filing your Articles of Organization, appointing a registered agent, and applying for an EIN.
Marketing Your Rental Property
If you want your property rented, you need to get in front of potential tenants. Create a brochure to leave in businesses and post on boards to advertise. Make sure you have a high-quality print job to make them look professional. Also, try advertising your properties through social media to get your listing in front of as many potential buyers as possible.
You can also post photos and videos of your property on Instagram. Be sure to interact with potential renters who comment on your posts or send you private messages. Use this free Instagram story template to create an inspiring Instagram story about rental. Choose a template, customize it, and add your own photos.
Another great tip is to work with a real estate agent. They often have open availability to show homes and have a good idea of what renters are looking for.
Make a Deal
By making upgrades and repairs, figuring out how you’ll manage your rental, and marketing your property on sites like Instagram, you’ll be able to rent your property and recoup that investment.
If you’re looking for a property in the Birmingham area, the Shannon Holmes Team can help find you the perfect home! Call 205-706-3975.