Over 41% of Reno's 269,000 residents are renters, which presents a great opportunity for property owners.
If you're a first-time landlord, you always look for an easy way to turn your investment property into a money maker. Once your rental property starts paying dividends, you can set aside large chunks of money to pay off debts, expand your portfolio, or supplement your income.
Being a first-time landlord is anything but easy, however. In today's post, we'll give you a few essential tips for becoming a real estate investor, from performing a rental analysis to maintaining your units. Read on and let us give you the right advice to navigate the Reno real estate market.
Perform Rental Analysis Before Buying a Property
Before you buy your first rental property in Reno, take the time to do a bit of research into the Reno real estate market. This will give you the ammunition to perform an accurate rental analysis on your prospective properties.
A rental analysis should give you a good idea of how much you can charge for a rental property. When you have this information, you can determine when and how much your investment property will pay out.
It starts with market research. Look at other similar properties in similar areas to see how much renters pay. Account for local amenities, the size of the home, as well as your mortgage payments - all of this can help you determine a sensible rental price.
Screen Tenants Thoroughly
After you've purchased your first rental property, you must quickly find renters. You can appeal to a large group of potential renters with good property marketing. Take professional photographs and write a thorough listing to post across all of the big rental listing sites.
The real work begins when you start receiving applications. You need to screen tenants thoroughly to ensure you get the best ones. It's a common misconception among new landlords that an occupied property is always better than a vacant one.
Vacancies are bad, but poor tenants can actively damage your property and create unnecessary stress. Perform background and credit checks on all applicants before checking past landlord references. This should narrow down the selection to a few of the best candidates.
Maintain Your Property
Once you've found the perfect tenant, it's your job to keep them content. Try to look after your property by performing regular maintenance and responding to tenant repair requests.
The more you put into your property, the more you'll get out of it. Not only will you avoid major repairs with regular maintenance, but you'll make your tenants' lives easier. Happy tenants will remain in your rentals for longer, helping you avoid costly vacancies.
Know When to Hire Property Management
Every new real estate investor should think about the perks of property management. The tips we've given will ensure your property remains lucrative, but it can be a lot of work. If you're falling behind, things can quickly spiral out of control.
A property manager, like PMI Diversified Properties, can handle all aspects of running your Reno rental. To learn more about how we help landlords and to get a free rental analysis, contact us today.