Just over 40% of rental homes in the states are owned by small-time landlords. Are you ready to become one of them? It's a great way to make some extra money, especially if you already have a spare property sitting around.
The internet may make being a landlord look easy, but in reality, it's a lot of work. Not everyone is able to make a profit (especially at first), and it's not for everyone.
That said, if you're up for the challenge, we're here to offer some insider advice. Read on for our top tips for new landlords, from rental analysis to property management
1. Start With a Rental Analysis
You want to make sure you choose a profitable property. You can do that with a rental analysis.
Conducting a rental analysis involves researching the local rental market to understand current successful rental rates, demand for properties, and vacancy rates. This allows landlords to set competitive rent prices and make informed decisions about property investments. That then attracts quality tenants.
Factors to consider in a rental analysis include location, property type, amenities, and comparable rental properties. A property analysis won't guarantee profit, but it will help.
2. Set an Appropriate Rent Price
Setting the right rent price is crucial for maximizing your rental income while remaining competitive in the local rental market. Landlords must find a way to strike a balance between earning a fair return on investment and attracting good tenants. If the rent is too low, the profits won't be good, but if it's too high you won't attract tenants.
Conducting a rental analysis, as we mentioned before can help landlords set appropriate rent prices that reflect the property's value and the conditions of the market.
3. Screen Tenants Carefully
The tenant screening process can be tricky. You don't want to be so strict that you miss out on potential tenants, but you also don't want to be so lenient that you end up with problematic tenants. So what do you do?
Landlords should conduct background checks, including rental history, credit history, and criminal background checks. They should also make sure tenants have the money for the rental, whether it's through normal income, inheritance, stipends, or otherwise.
Landlords can also check references from previous landlords, though this isn't always possible. Not everyone has a rental history, and that's okay. Screening tenants carefully helps mitigate risks.
4. Consider Hiring a Property Manager
Managing your own rental property can be time-consuming and challenging. Hiring a professional property manager can streamline property management tasks like rent collection, property maintenance, tenant communication, and more.
Property managers understand landlord-tenant laws, market trends, and property responsibilities already. They can provide landlords with valuable peace of mind.
New Landlord? Let Us Help
New landlords in Daytona Beach have a lot on their plates. These tips can help you get started on your property investment journey, but it's still a long road.
Why not let PMI Daytona Flagler help? Our team of property managers will help you with everything from rental analysis to evictions if necessary. We want to help you make the most of your investment.
Schedule a consult with us today.
