The latest property management tips from Housing Helpers of Colorado. While some people think that investing in real estate is easy, it is important to realize just how much work goes into it. That being said, it can be a great way to make some extra money.
Here are some tips from the property manager if you want to start investing in real estate.
Make sure that your credit is really good. If your credit is not very high, you are going to end up paying more money each month than you would like. Work on improving your credit score and try again in a few months or a year. It will be worth it because you will be able to buy a much better property for a lower price! And of course the goal should be that your expected rental income will cover your carrying costs for the property. Get with your property management company if you need help figuring this out.
Study the rental market – Do your research. You need to study the rental marketplace and see if people are renting homes in the area. It is also important to find out what they are paying in rent. If they can get a home for much less than you would have to charge in order to make a profit, you are going to struggle to find someone to rent to.
Put together a budget. A great rental property investment often starts with an analysis of money-in versus money-out. Create a simple spreadsheet. On the top of the spreadsheet you will list all revenues ; rent, ancillary income such as pet rent, parking rent, fees etc. Then below you will list all of the expenses of owning the property. Don’t forget to account for vacancy loss, leasing costs, property management fees, repairs & maintenance, taxes and insurance, and mortgage costs.
Choose your tenants carefully. Good tenants make the job of property management so much easier. They pay on time and rarely call with unreasonable requests. Even better, some of them will continue to renew their lease, staying for years at a time. This is great because you won’t have to do so much upkeep, as well as marketing the property for new tenants.
Holding real estate for the long term can be a great investment, though it is just like everything else. You have to learn what you are doing so you don’t make so many mistakes. The first thing that you must do is make sure that your credit is good. If it is not, you won’t be able to buy the perfect property. The second thing is to call a reliable property management company to help you with the rest! Call the professional property managers at Housing Helpers to get started today! 303-545-6000
Know someone looking for top notch property management company in Boulder? Refer your friends and clients to Housing Helpers of Colorado and when they sign up for our property management services we’ll send you a $100 gift card to say thanks!