You bought an Investment Property? Congratulations. Now what do you do next? Do not worry, you will do just fine with some guidance.
There are many gurus who claim to show you how to buy or take over property without any money or credit. Some can!
Others show you the traditional ways to buy real estate and make money renting it. No one, however, teaches you about the most important aspect of owning rental real estate, which is how to manage your property without losing your shirt.
Whichever way you acquire rental property, the first issue that you have to deal with is finding tenants. How do you get tenants who will help you to make the payments on this property?
Well, maybe you do everything that you need to do. You get your first tenant. Is that all that you need? Is it happily ever after for landlord and tenant now? Do not bet on it.
As you know, tenants are the lifeblood of any rental property. Maybe I should say good tenants. If you do not get good tenants, you can get so frustrated that your good investment will sour on you, and you will be looking for someone to sell the property to, even at a loss.
There are problem tenants. Plain and simple! Problem tenants do not stay in one rental unit for long. They move around. The probability of you getting one or more of them is quite high. In 20 years of managing rental real estate, I have seen very bizarre situations including a tenant who almost stole hundreds of dollars from me. He is still out there, and thousands like him! Bad as that sounds, he was not my worst tenant.
There are a few strategies that new and seasoned landlords can put in place to ensure a successful experience.
One must realize that this is an investment. you want your investment to grow and become more profitable as the years go by. You are now putting a total stranger in your property.
One of the first things that any landlord should do when renting out their investment property, is to have a contract. There are "standard" contracts. You can use this as a template, but do add any and everything that you can think of.This will help the prospective tenant to realize that you value your property. You want them to reside in it and enjoy it, but yo do not want them to "mistreat" your property. "Mistreatment" of your property will make its value go down rather than up. I am sure that you did not work hard to purchase an investment, and then plan to let its value go down.
Dr Mikson Ehimika has been investing in real estate for 26 years, and he is a private financier.
You can get the exhaustive details by emailing info@alpegagroup.com and ask for "Landlord Strategies."
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