5 Tips for Making a House Into a Lucrative Rental Property

Thursday Sep 22nd, 2022


5 Tips for Making a House Into a Lucrative Rental Property


Purchasing a home and turning it into a rental property is a great way to start investing in real estate. However, you have to prepare yourself for the commitment and work with knowledgeable realtor Danielle Russodivito to find the perfect place. Start the process by considering these tips to help you make a house into a rental property.


1. Consider the Location

Research shows that location is the basis of demand in real estate and impacts every part of the buying and renting process. One of the central concerns for any renter is location. Most want to be within a short distance from all their necessities, such as work, school, shopping, and restaurants. Where your property is located affects the price you can charge for rent. It's often a better idea to purchase an unfinished property in a high-demand area than to purchase a cheaper, finished home in a low-demand area.


2. Hire a Management Company

Consider hiring a management company to handle the rental process for you once the house is ready. Being a landlord can be tedious, cumbersome work, especially if your property needs consistent repairs. A management company will handle the tenant vetting process, such as doing background checks, as well. Then they take care of rent collection and manage maintenance requests. If you plan to build a rental company with multiple properties, you'll need the help of a management team.


3. Make Updates That Add Value

Increasing the home's value gives you the chance to charge more per month and make your money back quickly. Therefore, plan to make updates that will make the property worth more money. For example, install or repair the HVAC system. If the property already has an HVAC system, have it inspected by a professional to see if there are any necessary repairs to be made. These systems can take a beating over the years and sometimes need repairs to the exchangers, heat sensors, and ductwork. Just be sure to properly vet the HVAC contractor before you allow them to work.


4. Choose Your Business Structure

Once you start your rental company, you need a well-drafted business plan to help you set goals and define your company. The first thing you need to consider is how you plan to structure your business. Most small companies start by registering as LLCs for the extra flexibility and the ability to protect private assets. You can even register for yourself with an online formation service. However, every state mandates its own business structuring regulations. Therefore, be sure to check the specific rules in your state.


5. Market Your Rental on Social Media

Your realtor can help you with marketing your property. However, there are some components you can handle on your own. For example, use your social media to get the word out about the rental. You can use an online ads maker to create a Facebook ad template and customize the fonts, colors, and text. Then you can download it and share it on your page.


After completing the HVAC work, forming your LLC, and marketing your business, renting your property may seem like the final step. However, remain flexible, and you'll be prepared to face any obstacles that come your way. Being a landlord is not always easy, but it's a great career option if you want to be self-employed.


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