With the real estate market booming, and especially the rental sector, now is the perfect time for those keen to make an investment in a rental property. To begin the process, it is always best to seek advice to get the best tricks and tips for investing in a rental property. If this is your first time becoming a landlord, it is strongly recommended to look into the best rental property management in Orange County to ensure your investment will pay off. This is especially so if you have a full-time job outside of your investment property. With the difficulty of knowing what you need to know beforehand, here are our top five tips for investing in a rental property.
Tips for investing in a Rental Property
Location, Location, Location!!!
Before putting money aside, one of the top tips for investing in a rental property is to check out the area! Speak to the local community to gather insight into the neighborhood and speak to homeowners to get an understanding of how lucrative the properties really are. Walk around to see the type of tenants the area attracts and whether the tenants you desire could live here. The quality of the neighborhood will determine the tenants. For example, if it is near a university, you may have a lot of students searching for rental properties. If you would prefer small families that can commit to long-term rental period, then find an area which has low crime rates, is close to good schools and just a stone’s throw away from things to do on a weekend.
Set money aside for potential repairs
This is one of the top tips for investing in a rental property. It is best to hope you won’t have to deal with any repairs for at least the first year but unfortunately, there is always something. Whether it is a burst pipe, a broken refrigerator or a shattered window – these things cost money! To avoid any unwanted surprises, set a little bit of money aside in the event that something will need repairing. If the damage is a direct result of your tenant, then the liability falls on them to pay up, however, anything else is going to have to come straight from your pocket. Luckily, once the property starts to make a profit, you can reinvest. However, for the sake of a stress-free life, having a cash pot dedicated to potential repairs is always a good idea, especially as you dive deeper into the investment game!
Consider property tax
Property tax can be a nightmare, and if you aren’t prepared for it beforehand, it can cause weeks of sleepless nights and quite a while of breaking even before you begin to make any money at all. Property tax caps on rental properties are an entire percentage point higher than your primary residence which can be quite a jump depending on the area. Visit the local tax assessment office that will have all tax information in hand to find out a rough estimate of the property tax. If the tax is high, but the area is in an excellent location and will attract long-term tenants, this isn’t necessarily a deal breaker. Chat to neighbors that own their homes in the community to get a better idea. If you do decide to go with the property then adjust the rent according to the property tax. Choosing the best rental property management in Orange County will benefit you, as they can help you with this.
Screen your tenants wisely
Finding great tenants can be a goldmine. Not only do you not have to worry endlessly about your property, knowing that it will be in good hands but it can mean a long-term relationship that provides you with a constant stream of income every month. Those tenants are a joy, but need to be picked meticulously as you don’t want to find yourself with a tenant that sets you back in repairs or those that you have to chase up incessantly on tenant arrears. To avoid total destruction of your property, high tenant turnover and many sleepless nights, screening for the right tenant is essential. A best rental property management in Orange County will help you to do this. With experience and tips for investing in a rental property, they are fully qualified to screen tenants tailored to your requirements.
Find yourself the Best Rental Property Management in Orange County CA
If this is your first rental property, and especially if you have a full-time job aside from this, having a professional company manage your property not only takes away the demands a rental property has on a daily basis but, can save you money in the long run. Finding a great property manager is the most important thing. Goodman Management team is one of the best to go with in Orange County with years of industry knowledge and professional experience. What makes them stand out from the crowd is that as well as being qualified in real estate and property management, the team all has individual skills including engineering, plumbing etc. Therefore, they work tirelessly to protect you from excessive costs repairs may account for by fixing a lot of the problems themselves. They can also take away the tenant screening process, taking into account your requirements and finding ideal tenants, reducing the cost of tenant turnover and any damages that may be caused by “clumsy” accidents.
Gerry Goodman and his team are highly recommended on being honest, great people to have a long-term relationship and trustworthy. As they work to ensure you are getting the most from your investment, you can relax knowing that your property is in good hands.