When choosing the best type of rental property to buy, experts say for beginners, usually, a single-family condominium will be the ideal type. One of the reasons is that condominiums have low maintenance because there are associations taking care of the building; they assume responsibility for repairing and improving the external part of the property, making it easier for you to focus on the internal parts. One of the downsides of this, however, is that there are many companies that do not deliver their promises; therefore practically leaving their condominium units unattended after they’re sold. This is not good for a rental business, especially for those which are independently managed.
It was also said that single-family homes are more likely to get tenants that stay longer. As a landlord, having a long-term customer is very important and should be the main goal for marketing as it will help you save a lot of time, energy, and money for yourself because there is no need to keep on doing the lengthy process over again, or at least they’ll be minimized, especially for the screening of tenants, advertising and marketing, and for the stressful repetitive meetings and tenant orientations. Besides the reason that families are more capable of paying the rent consistently because they tend to have more stable financial income, couples are also more likely to settle longer in a place where they are comfortable, most especially if there are children.
Now to take advanced action for ensuring the profitability of your business, experts always suggest that you should get the most reasonable price; which is not more than 12 times the yearly rental income you want to generate. In addition, as much as possible look for a property that doesn’t need repairs and renovations but if it does so, at least those that only require minor ones. Most importantly, be sure that you can make it attractive to renters, especially to those who can pay the rent you really want to assign because if you will be the one who is going to chase the money, the value of your property might always be compromised.
Next, observe and study the market value of the neighborhood. This means as much as possible, choose the neighborhood located in an area where parks, gyms, schools, restaurants, malls, supermarkets, and entertainment centers are available, if not near because most tenants choose to stay longer in a place where everything is accessible so they don’t have to travel miles away for their essential needs. Therefore, to increase the change of possible income for your business, choose the kind of location where you have these kinds of things for the tenant’s convenience.
Lastly, watch out for the listing number of the neighborhood. If it has a high number of listings, it could be possible that there is a seasonal cycle or it could be that the neighborhood is in decline. Therefore it is important that vacancy rates are always be kept low so you don’t have to adjust the rent just to get a tenant. This is not a good model for a rental business. If you ask the experts, the best thing to do for your investment to be consistently increased year after year is to maintain the value of your property by improving it. Now it’s understandable that these things are not easy to achieve, especially when you don’t have experience already. Obviously, the responsibilities are not easy to manage. Well, to be honest, you need to hire a property manager. This is the only way for you to succeed. If you want to learn how we can help you, contact us at Jaxon Texas now. We have a lot of success stories for our 15-year experience to tell you. Call us now!