Guest Author: Emila Smith
Though rental estate seems like a lucrative source of passive income and a desirable form of extra money, the entire process of finding a property, renovating it, and renting it out (all while maintaining and handling its complexities) may often feel daunting and stressful.
This type of investment is usually done by above-average income holders as a 15 to 20% down payment is required initially to purchase the property, and you won’t typically see university students in this type of business. Let alone the maintenance and upkeep costs and the constant running around.
A landlord must know how landlord-tenant relations work and the legalities attached to them.
One could hire a property manager, but that would ultimately decrease revenue and decrease the profit margins.
That’s why this article will provide the right tips and advice to those who want to establish themselves as a landlord.
Let’s have a look at some of the main benefits of investing in real estate.
Location is one of the tenants’ most important factors when choosing what property to rent and how much they are willing to pay. For example, a real estate property located close to corporate offices, in a district with a relatively low crime rate and a city with a reliable public transport system, is not only a profitable rental investment but also has the potential for it to be sold for a higher price in the future.
The proximity of restaurants, cafés, parks, and cinemas can also affect the rent your future tenants will be willing to pay. The same goes for schools and a good community setting. You should also take into account the different property taxes in each state.
Not all investors can purchase property upfront on cash payment. Luckily, there is the option to apply for a mortgage. However, this financing option comes with some prerequisites that the potential landlord must meet.
Here are some of the main requirements to be held eligible for a mortgage.
When investing in a real estate property, you need to ensure your asset is protected from multiple threats, including burglary, vandalism, and natural disasters.
Investing in effective physical security measures can also make your property more attractive to potential tenants.
Video security is one of the most important components of a physical security strategy.
Nowadays, multiple video monitoring systems are available for different types of properties, from multi-family residential security camera solutions to technologies aimed at boosting video security in properties with large outdoor areas.
Other physical security measures you should consider installing in your apartment include RFID access control solutions, smart alarms, fire detectors, and carbon monoxide detectors.
To make the property appealing and add value to the estate, you can add amenities and solutions that improve the tenant’s quality of life. The following is a list of all desirable amenities a property should have.
While many relationships between landlords and tenants tend to be successful, others end up in never-ending clashes due to issues such as late payments, maintenance, or noise.
Therefore, it’s crucial for landlords to be fully aware of their rights as well as those of the tenant.
Understanding rental laws (and how it changes from state to state) is therefore crucial for landlords who don’t want to find themselves in difficult legal scenarios.