Skip to content

Is It Time to Buy Your Next Investment Property?

If you own an investment property, you’ve probably already seen the advantages at work. If you’ve done your homework, you are probably making a decent side income from renting out your property. So much so, in fact, that you might be considering purchasing another property to ramp up your profits even more.

If you’re considering taking this big step, don’t do it lightly! Property ownership can be lucrative, but you should also make sure you are ready to commit to the investment you’ll need to put into it. Here are a few things you should consider before you purchase your next investment property.

What type of property are you looking for?

Don’t think that you have to buy the same type of property you already own. You could think about buying a single-family home, a condo in a complex, or a vacation home. Do some research to determine what’s available in your area, what pricing is like for each of these options, and what you can charge for rent.

Figure out the finances.

You might want to talk to a realtor or property management company to help you out here. You’ll need to think about your down payment, tax implications, insurance costs, and available cash before you consider taking real action towards purchasing anything. The ultimate goal is for your property to be a great investment, so make sure you don’t put yourself too far behind, right from the beginning!

Talk to others who have been there and done that.

All the online research in the world can’t really replace solid, first-hand experience from someone who actually owns multiple properties. Ask around—chances are you’ll be able to find someone that can give you a little bit of advice and get you started on the right foot.

Don’t go it alone.

Since you already own your first property, you probably have a decent network built up of people who are helping you maintain and manage the home. Use this team to your advantage when it comes to buying your next property. Talk to your realtor about property values, or ask contractors and repairmen about costs to fix up a potential property.

Get all the right tools.

Going from a single property to multiple properties can get pretty complicated, pretty fast. You are most likely going to want help managing your finances, drawing up rental agreements, determining lease terms, and qualifying for good loans. There are many decent online tools available to you, but your best bet is going to be help from real people.

Finding a great property management company can make all the difference when it comes to making sure your investment properties don’t turn into a giant hassle. These companies help you with everything from marketing and contracts, to rent collection and evictions. Don’t ignore this great tool that’s available to you; it’s more than worth it!

Investing in real estate has long been a popular option for those looking to beat the stock market and become financially independent. If you’re ready to make the jump from a single property owner to a multiple property investor, follow these tips to stay on top of things and get your new career off to a good start!

Real Property Management has been helping investors manage the investment properties for years. With an experienced team and a proven process, RPM can help you with your expenses, your tenants, your maintenance, your inspections, and many other aspects of property ownership. Contact us today, or give us a call at 480-719-1243 to find out how we can help you make the most of your investments.

A Quick Safety Checklist for Your Rental Home

Whether you’re just getting ready to rent out your property for the first time, you’re in between tenants, or you just want to make sure everything is in order for the new year, it never hurts to take a quick look at the state of your property when it comes to safety. In fact, because tenants have a right to a safe home, you are required to make sure your property meets certain safety standards.

While you’ll definitely want to talk to a property management company or similar expert to learn the specific requirements for your property, there are some basic things you can (and should) do regularly to make sure your property is safe for occupancy. Here is a starter checklist of things to keep an eye on.

Structural elements. These include the very basics: floors, walls, ceilings. Check for anything that is out of order either visually or functionally. If the floor slopes or bends, there could be foundational issues. If there are any “soft spots” in hard floors, or stains that don’t go away or that keep coming back, that could be a sign of water damage. Similarly, unevenness, cracks, bulges, or stains on the walls or ceilings could indicate a serious issue that requires immediate attention.

Electrical components

Non-working outlets or switches could be a sign of faulty wiring, and they should be examined by an electrician to avoid the possibility of electrical fires.

Heating and cooling systems

Not only are HVAC systems important for your tenant’s comfort, problems with these systems could create safety issues if left unchecked. Regular cleaning can avoid a lot of problems, and will be much cheaper than handling water or fire damage caused by a neglected system.

Appliances

This is as simple as making sure things like the refrigerator (if your property includes one), microwave, stove, and oven work properly. Do they reach appropriate temperatures? Do all the burners work as they should?

Plumbing

You definitely want to make sure there are no plumbing leaks in the house, as those problems can cause water damage—whether that’s structural damage or a health risk (like mold). Check faucets, showers and tubs, and toilets.

Exterior environment

You’ll want to make sure the exterior of your property—both in the front and back of the house—is well lit. This is a big safety benefit to tenants who may be outside at night, and it also could deter criminals from trespassing on the property. Also, make sure all pavement is well kept and no repairs are needed, and that there aren’t any large holes or problems with the landscaping.

Windows

Cracked windows could be a big safety hazard to tenants. Similarly, all windows should have working locks on them; this ensures that children do not open (and potentially fall out of) windows from the inside, and also takes another step in deterring criminal activity on your property.

Alarms

Check smoke alarms, carbon monoxide detectors, water detectors, and any security alarms or cameras you have to make sure they are in good working order. Also, make sure your rental agreements clearly outline who is in charge of maintaining these alarms and paying for repairs/replacements.

Creating a safe place for your tenants to live should be priority number one for all landlords and property owners. Keeping to this basic checklist will help you stay on top of any safety related issues at your property, before someone gets hurt.

Need a hand with maintenance or repairs? Want help finding the perfect tenant for your space? Real Property Management can answer your questions and help you prepare, market, fill, and manage your rental properties, saving you time, money, and headaches. Contact us today at 480-719-1243 to see what our years of experience can do for you.

Should I Rent To Families With Children?

When you first think about it, you might think that renting your property to a family with children is a terrible idea. You’ll probably picture marker on all the walls, crumbs wedged into every nook and cranny, and carpet stains created by who knows what.

It’s true—families can be a mess. However, you shouldn’t write them off entirely when you are searching for a tenant for your rental property. For one thing, such discrimination is illegal; but for another, family renters have a lot of benefits as well. Read on for a few of those benefits, and also for tips about how to attract families to your rental property.

They are often more financially established.

Generally speaking, it is pretty common for parents to be a bit older, and more established in their careers, than younger, childless tenants. Financial stability can only mean good things for you as their landlord.

There is more potential for a long-term lease.

Families with children do not want to be moving around very often. Not only is moving a bigger job for them (more clothes, more furniture, and all those toys!), but it is also difficult emotionally for children to move frequently, especially once they are in school. For these reasons, parents are probably looking for a home they can rent for a while, rather than a temporary living solution.

You’ll have to clean the house anyway.

Sure, the walls might end up a little more scuffed up than you’d like, but chances are, you’ll want to paint them before the next tenant moves in anyway. Yes, the carpets might take a beating, but again, cleaning or replacing the carpet between tenants is pretty standard. The truth is, there is very little that children could do to a house that won’t be taken care of in a standard tenant switch.

For those things that end up being broken or damaged beyond repair during the family’s stay, you can use your security deposit. In other words, you are pretty much covered when it comes to paying for any extra damages renting to a family might incur.

You can make family-friendly changes.

If the idea of renting to a family appeals to you, consider making a couple small changes to your home that will make it a more attractive choice for families. For instance, getting rid of carpet in high-traffic areas will benefit both you and the family, since carpet is more difficult to keep clean. Also, when repainting, use a paint with a finish other than flat. Flat paint shows scuffs and fingerprints much more easily, which means those walls will start looking dirty, fast, if children are living in the house.

You’ll need to change your marketing strategy.

If you think your property may be good for families, you’ll want to rethink how your market it. You’ll definitely want to point out the high points of the neighborhood, for example. Are you close to a park? Are you zoned for good schools? Are there lots of other children in your neighborhood? Low crime rate? These are all things that families with children will care about—a lot.

The house itself should also be marketed differently. Families with children want lots of storage space, an enclosed back yard, and a separate bathroom for the kids. If you happen to have a den, basement, or loft in your house, point out that those areas could be used as playrooms for the kids. Highlighting these “kid-friendly” features will make your house a much easier sell.

Renting to families with children might seem stressful at first. Take a deep breath, recognize the positives, and embrace it!

If you want help marketing or managing your rental property, contact Real Property Management today. We can help you find and keep good tenants that will help you turn your property into a profitable business venture, with minimal effort and hassle on your part. So give us a call at 480-719-1243. We’d love to see what we can do for you!