You've finally purchased your very first rental property in Phoenix, Arizona. This is a great opportunity not only to build up your property portfolio but also to generate a form of passive income. However, investing in property isn't always the easiest process.
Now that you're a real estate investor, you need to find a way to rent out the property, keep it in good condition, and avoid legal trouble. You never know when a tenant will turn out to be problematic or if you'll need to make changes to your property.
Here's what to expect when buying property to rent for the first time.
Hire Property Management
One of the very first things you should do as a new rental property owner is to call a property management company. These companies specialize in taking care of your real estate needs while you focus on other parts of your life, such as your day job.
You can rely on them as much as you need, whether it's maintaining your properties or starting a marketing campaign.
Prep the Property
Next, you'll want to prepare the property for its new tenant. Some areas to inspect include water damage, cracks in the walls, the HVAC system, and the sewage system.
All of these problems will pop up when a resident moves into their new home.
Water damage and cracks in the walls will let in all kinds of mold, mildew, and pests. A malfunctioning HVAC system can make an environment unlivable. Unmanaged sewage problems are dangerous for everyone involved.
Set Competitive Rental Rates
How much you charge for rent will determine how easy it is to get new tenants. If you charge too much, then that'll limit your reach but provide more rental income. Charge too little, and you'll get a lot of applicants to sort through.
Research how much your competitors are charging, and consider rent increases in your area.
Screen Tenants Thoroughly
A landlord needs reliable tenants to maintain a steady income and avoid problems later on. One of the worst things that can happen is being forced to evict a renter.
Outsourcing your tenant screening process to a property management company can help expedite the process.
Draft a Lease
The lease protects your investment by setting rules for both tenant and landlord. It outlines the expectations, such as the rent amount, when it is due, and what your renter can change in your property.
A good lease should also outline the terms of the landlord's access, protecting the tenant's privacy and allowing for routine inspections.
Succeed as a Real Estate Investor
Any first-time real estate investor will need to seek out some help before they start buying more properties. A property management company is usually a good start, as they have plenty of experience in the real estate market.
PMI Phoenix Metro is one such company that serves Phoenix and its surrounding communities. Our services cover residential management and home watch. Schedule a consultation to learn more and get a free rental analysis online.
