Real estate is one of the most popular investments in the US, and for good reason. There are over 8 million independent landlords in the country with over 45 million properties, many of which are looking forward to a secure retirement.
If you're thinking about getting into the industry, there's a lot to know in order to be successful. Let's talk about ways to ensure your property investments are secure and successful.
What Makes Property Investments Successful?
Ideally, you want to be making a profit. That would be the definition of success for most property owners. However, we don't want to stop there. We want to maximize our profits in certain respects.
While there are many types of real estate investments, for this, we will be discussing the investment type with the highest profit potential, and that's rental properties. There are many important elements when it comes to managing a successful rental property, and here are a few important parts to look for.
A bad tenant can turn a profitable investment down the tube in the course of a few short months. Not paying rent, causing damage to the property, and eviction protection are some of the biggest drains on your investment that you can imagine.
Weeding out some of the bad tenants ahead of time is your only defense. Evictions can be messy, so there is no better tool than proper tenant screening to maximize your investment.
The Right Neighborhood
One of the fastest ways to turn a good investment sour is if the property goes downhill. This is one of those things they don't tell you about the industry, and it's something that insurance won't cover.
Make sure that you're buying a relatively safe property. If it's prone to floods, if the neighborhood is already trending downward, or if there is a lot of crime in the area, keep looking. Ask the seller why they are selling.
A neighborhood near public transportation to a major area, near a school, or near a significant landmark will tend to offer a better chance of remaining steady.
The right marketing tools or services will make your tenant screening process a little less stressful. Make sure you're marketing on all the right platforms, going over expectations upfront, and beginning the process of narrowing down to the right people to apply.
Honestly, the most important aspect of any real estate investment is having the right management. The right management team will be able to cover marketing, tenant screening, maintenance, keeping up with market prices, and more.
Not only will they bring their expertise to the table to maximize the return on your investment, but they will also help you generate passive income so you can just sit back and enjoy the checks rolling in!
Now that you know about the potential of the right property investments, there's no time like the present to get started! Real estate is one of the safest investments out there, especially if you have the right management on the job. Stay up to date with our latest real estate news and reach out for help if you need it!