How to Be a Landlord: Tips For First-Time Investment Property Owners

Have you just purchased your first rental property? Investment properties can be a great way to increase your wealth with passive income and real estate appreciation. Being a landlord is a big adjustment, though. If you want your rental property to be a success, you'll need to start with the right advice. Here are the real estate investing tips you need to make money.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

Research, Research, Research

Before you even purchase your property, you need to know its worth. Before listing your property, look at the area's real estate market conditions. Pay close attention to trends and fluctuations in the market that will allow you to predict future trends.

Look at the value of other properties in the area to ensure your property is priced competitively. If there are other property investors in the area, try reaching out to them to gain some knowledge from their market experience. Receiving advice from a seasoned property investor can help you to advance your understanding quickly.

Attracting The Right Tenants

You must ensure that your property marketing includes all aspects that attract the right tenants. Learn about your target demographic and develop an appropriate marketing strategy.

Regardless of who you're renting to, you highlight the property's amenities. Home security, nearby restaurants, and an on-site gym are likely to appeal to all renters. Knowing who your ideal tenant is will help inform how you market your property and the features you highlight in your listing to attract this type of tenant.

Consider Property Upgrades

Property upgrades are a great way to maximize the value of your property and increase interest in the property from prospective tenants. However, assessing the property's condition and faults is essential to ensure you are prioritizing the upgrades correctly. When performing upgrades, you must consider your ideal tenant and the features they would be most excited about.

Below is a list of the property upgrades you should consider to increase the value of your property.

Appliances

Your tenants will need convenient and easy-to-use appliances in their homes. Take stock of the devices in your property and see which ones need to be updated, need repairs, or are unsightly. Prioritize repairing or updating these appliances to attract tenants. If you opt for new, high-spec devices, this will add value to the property.

Security Measures And Systems

Your tenants deserve to feel secure in their homes, so you must prioritize security. Consider installing smart door locks that protect the property from intruders, allowing tenants to enter using a code, fingerprint, keycard, fob, or mobile device.

Additionally, you should consider placing security cameras on the property's exterior to deter a potential crime. Simply putting surveillance cameras in clear view will help to prevent criminals from attempting to enter the property. You'll also need to decide between analog cameras vs. digital cameras. You can opt for analog security cameras for more savings, but digital security cameras provide high-quality footage that will make your security footage more useful in a criminal investigation.

Curb Appeal Upgrades

To enhance the value of your property, you can invest in curb appeal upgrades. Consider which of these options would most increase the visual appeal of your property:

• Lawn services - ensuring the greenery on your property is in order will make it instantly more attractive.
• Driveway upgrades - cracked concrete can instantly draw from a property's visual appeal. Consider investing in a new driveway or pathway for the property.
• Front door - if the property's front door is worn, chipped, or unsightly, updating it will improve the whole feel of the property's exterior.

You can also remove and update fencing, structures, and unsightly elements in the front and back gardens to ensure your property's value isn't inhibited.

Energy Efficiency

Tenants will be looking at the energy cost of a property. Consider installing energy-efficient appliances and upgrades to enhance your property's appeal. Solar panels and smart appliances are great ways to make your rental stand-out in today's energy-concious market.

Determine What Your Team Will Look Like

Taking on the role of a property manager can be extremely time-consuming and may not be ideal if you have a family, job, and other responsibilities. Consider outsourcing your property management, accounting, and property marketing to a professional service to reduce your workload and free up your time.

Are You Ready to Rent Out a Property?

As a new property investor, it's essential to improve the value of your property and maximize your income. Consider what type of investment property is best for you, then think about which upgrades would make your property attractive to this tenant. To ensure property management is not consumed too much of your time, you'll also need to look at what team looks like.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.