(Published on - 5/26/2016 6:22:59 PM)
I have had many clients and friends inquire about investing in real estate and becoming a landlord. With Interest rates at historic lows and some less-than-desirable returns on the stock market, Real Estate investing is becoming a popular option. Here are a few frequently asked questions that I hope will be helpful
First, choosing to become a landlord can have some great benefits, but you should make sure you ask the right questions. By thoroughly reviewing your overall investment strategy, you can determine how investing in Real Estate can help you achieve your investment goals. Together we would make sure it's the best path for you and your family. Remember, although real estate investing can have great benefits, there are, like any investment, great risk. You will want to find the right property with the right potential rental income. I can help you determine what different properties rent for based on location, amenities, etc. You will want to make sure your monthly rent covers your payment, repairs, taxes & insurance, not to mention any HOA fees and management fees you may incur.
Second, prepare your rental for new tenants by making any necessary repairs. Be sure to touch up the paint both inside and out and finish by always having the carpets professionally cleaned. Good tenants will expect nice properties. If you show them that you take good care of your property, they will know what you expect from them. Likewise, if you neglect your property, you are showing them it’s ok for them to neglect it also. The best way to think of it is to keep your property in a condition that you would be willing to live.
Third, advertise the availability of your rental. The real estate market in my hometown of Yuma Arizona fluctuates greatly so you will want to understand where and when to advertise. Along with a sign at the property, utilize classified ads and even social media to help get the word out. Take plenty of high-quality photos and use them in all your ads. Virtual tours and flyers are also great options.
Fourth, choose the right tenant. Vacancies cost you money, it’s as simple as that. Filling your vacancy quickly is important but do not make the mistake of choosing the wrong tenant out of haste. Once an application has been filled out, you will want to review it thoroughly. Screen potential tenants by checking their credit, verifying their income and check their prior rental history. Just because you finally found someone who wants it doesn’t mean they are qualified. Fair housing laws can be reviewed and printed at: www.hud.gov/fairhousing.
Fifth, and finally, consider using the services of a property management company. Many landlords manage their own properties, but there may be a variety of reasons why you might look into hiring a property manager, like me, to do this for you. When searching for a management company, ask plenty of questions and make sure that you are in agreement on how to manage your property, and choose the best one that fits what you're looking for. Property management services could include advertising the property, showing the property, interviewing and screening potential tenants, executing the lease on your behalf along with serving the tenant notices of termination for violations such as non-payment or non-compliance. Managers would take those 24/7 phone calls from tenants plus hire contractors for repairs to the property.
I hope this basic information was helpful to you and like any investment, do your homework! A free PDF version of the Arizona Landlord & Tenant act is available at: Arizona Landlord & Tenant Act.
If you would like to talk further or have any questions or concerns, please do not hesitate to contact me anytime at (928)246-9893