OK, So you have made the leap and decided to invest in real estate. Good Choice! Not only can this type of investment diversify your retirement portfolio, but it can generate passive income for you in the meantime. Now that you have made the jump how on earth are you supposed to know what will bring the best ROI? Thankfully your friends at Real Property Management Instant Equity have compiled a list of 5 keys to investment property success.
Screen all applicants
The last thing you want to do is place a tenant into your property that does not pay rent on time and eventually has to be evicted. This is a costly and time consuming process and at the end of the day the longer this takes and the longer that your property is not collecting rent the more revenue you miss out on.
Be upfront and honest with all lease terms
This should be self explanatory, but there are plenty of horror stories where the lease terms were not clearly defined and the property owner was left with the bill. In all of our leases we indicate that the home must be professionally cleaned by a truck mounted certified cleaner. This prevents the current tenant from being able to get off the hook for a spotty cleaning job that was not done professionally.
Perform an initial property inspection
This creates an initial reference point. Document all aspects of the home and take pictures. This can help you make a claim to the tenants security deposit if repairs need to be made upon move out.
Maintain the property
Keeping the property in good shape can not only bring in higher rents, but more satisfied tenants as well. This can lead to more generated income over the long term.
Document everything
Take pictures and have everything in writing. Just like maintaining the property, this will prevent issues in the future.
While these are five very important tips that can help you as an investor get the best ROI nothing helps preserve your property and increase its value more than hiring a property manager. Property management simply put creates worry free investing. No need to spend weekends maintaining the property or worrying about tenants paying on time. Simply hire a Real Property Management Instant Equity and you will have nothing to worry about except for how you’re going to spend your passive income.