3 Tips for Buying Rental Property

by Kimberly Povernick 11/01/2020

Photo by Moose Photos from Pexels

Rental properties are becoming extremely common in the world we live in today. Many people are realizing the huge profits they can make from rental properties, and the need for these rentals isn’t going away any time soon. If you’ve ever wanted to be a landlord and rake in some cash on the side, you’re not alone. However, buying rental property isn’t always easy and there are some things you should understand before getting the keys to your new home.

Make Sure You’re Ready

The fact of the matter is, owning rental property is harder than it looks. From insurance and laws to home repairs and dealing with tenants, it can all be a very time-consuming and stressful job owning a rental property. And if owning property isn’t your full-time gig, the process can be even more difficult. Make sure that you do your homework and that you’re prepared for anything that can happen regarding your new property. Research everything that needs to be done for a rental owner, then also look up how to manage tenants properly. Also, managing a property takes a lot of time and energy, especially if it’s your first time. It's also important to have the right schedule while managing a property. While you can still have a full-time job, you should have the flexibility to meet with the tenants and take care of repairs or issues when needed.

Keep a Proper Budget

When owning rental property, you’re owning a home that can see damage, which can be very costly. And if you don’t have the money to handle repairs and disasters when they strike, then you could have a home just sitting there with no tenants interested. This is why you should always budget for the unexpected. Some examples of what can go wrong include:

  • Broken dishwasher
  • Damaged pipes
  • Irrigation issues
  • Carpet damage
  • Damage to walls
  • Window damage
  • Be Cautious of a Fixer-Upper

    While you’ve always had a dream about buying a fixer-upper and creating something incredible, this dream doesn’t pan out for many. That’s because many of these people bite off a little more than they can chew, and they don’t have the time, energy or resources to really build something profitable. Therefore, you should be very cautious before trying this method for yourself. It is possible to make money from a fixer-upper, but it takes tons of work and can be very difficult, especially if you’re buying your very first rental property. Dealing with one of these properties might require spending thousands on materials, hiring professionals, dealing with plumbing issues and possibly dealing with structural damage.  While you may be very tempted, try looking for a property that needs a few simple renovations and one that is priced below market value.

    Preparation is Key

    Before you jump into buying a rental property, consider the three tips outlined above to have confidence throughout the process. This will ensure that you're well-prepared for what's to come. Fixing a home, dealing with tenants and paying for insurance can all be stressful, so it's best to understand these responsibilities before purchasing a rental property.

    About the Author
    Author

    Kimberly Povernick

    CUSTOMER-FOCUSED REAL ESTATE

    Hi! Thanks for visiting my website! I know there are 1000's of real estate websites, so I'm SUPER HAPPY that you're on mine!

    To make a long story short, I've been a realtor for over 14 years. I was also an elementary school teacher and registered nurse in the past, but real estate just won over my heart. I absolutely LOVE what I do and get so much joy out of helping customers buy and/or sell their homes. I've been fortunate that I've worked with so many awesome people who ended up becoming my friends long after the papers were signed and the deal was finished. :)

    I give EXCEPTIONAL service and treat every customer like they are my only one. My ability to go above and beyond for my customers is partly just by nature, and partly because I am selective about who I assist. The relationship between a Realtor and a customer must be one of mutual respect, understanding, and trust. Therefore, all three traits must be present for both of us to have a positive experience and reach your ultimate real estate goals.

    I am honest, hardworking, intelligent, and excellent at what I do. However, this isn't about me...it's about YOU, the customer. So, it's vital for YOU to trust in my character and abilities to represent you in one of the biggest moments of YOUR life. Bottom-line...I only work with people who WANT to work with me...period.

    If you're looking for a straight-forward professional who's been in this crazy (but fun) business for a long time and will be in your corner every step of the process, you're on the right track. Trust me when I say that who you choose to work with DOES matter...more than you know!

    Call me any time and we can chat! I'm full-time (no, I don't sell candles or oils or Avon on the side...not that anything is wrong with any of that)...but I am 100% REAL ESTATE FOCUSED. So, I'm always here to answer any questions you may have.

    How can I help YOU today? :)