Tenanted Properties and Property Management
Real estate investing can be a very profitable business opportunity. Real estate is something that will never go away, which means that there will always be a demand for living space, whether it’s an apartment unit or a single-family home. Owning your rental property may seem like the perfect way to increase your income and build equity simultaneously.
But if you are considering this type of investment, here are some things to consider before you run out and buy up all the real estate you can afford!
Owning a Rental Property
When it comes to determining whether or not you should own a rental property, there are many things you need to consider before entering into this type of investment.
First and foremost is the cost, which means more than just the purchase price and maintenance and upkeep costs. You will want to know how much your monthly mortgage payments (including taxes and insurance) will be at current interest rates.
If possible, ask about any potential future increases in property taxes and insurance premiums due to a decrease in home values in your area because these can negatively impact your cash flow.
Finally, be sure to consider the cost of additional expenses associated with owning a rental property, such as vacancies, repairs, and maintenance, with determining what your actual cash-on-cash return will be.
Ten Tips for Renovating a Rental Home or Condo
So you have decided it is time to purchase a rental property. But before you jump in, here are ten tips that will save you money when renovating your home or condo.
In addition to saving yourself money, following these tips will also help ensure that your investment is properly maintained, allowing you to offer better service when renting out your unit(s).
Know the rules and codes: Ensure that any renovation project you undertake will not violate local building codes or neighborhood association guidelines. Some renovation projects may require you to pull permits to prevent potential issues with your neighbors, building inspections, or the city when selling your home.
Do it yourself: Many people fail at renovations because they do not fully understand the process and know all the steps involved. The best way to avoid costly mistakes is by doing it yourself.
Look for deals: When renovating a rental property, the cost is always an issue, so look for inexpensive yet effective solutions instead of more expensive items that will only add value.
Work on one room at a time: Don’t try to tackle too many things at once, such as electrical wiring and plumbing painting just before moving into new tenants. Renovating one room at a time will help you plan ahead and keep costs down.
Don’t buy new: Look for ways to reuse old items instead of purchasing new ones. Ask yourself, “Do I need this?” or “Can it be purchased used?”
Get rid of unwanted items: Sometimes, the best way to save money on renovations is by looking through your possessions and purging what you don’t need. Sell off any items that have value online or donate anything that can be used by someone else.
Skip the accent pieces: Although you may want to add lots of colors, colorful appliances, even colored countertops can cost a lot, so consider going with neutral colors.
Be creative: If you can’t afford a professional, take a class to gain the skills needed to do the job yourself. In addition, if you notice that your rental unit has outdated appliances or fixtures, many local college campuses may allow you to use their spare equipment until it is time for them to replace it.
Plan ahead: Make sure that any renovations are done in stages so that at least one room is always available for rent.
Wait before painting: Painting projects require lots of prep work which will add up quickly; plus, there’s always the chance of damaging items while doing so (think of moisture issues with paint strippers). Before painting any surface, scrutinize this and ensure proper ventilation during the project.
Don’t forget about the outside: The exterior of your rental property is just as important as the interior. Make sure that any repairs or renovations are done promptly and that it is always well-maintained
Renovating a rental property can be costly if not done correctly. You can save yourself time and money while ensuring that your investment is properly maintained by following these tips.
How to Use a Property Manager for Finding a Qualified Tenant?
When renting out your property, using a professional property manager will help you find the most qualified tenant possible. In addition, a good Kelowna property manager can also help take some of the day-to-day tasks off your back so that you can focus on other important matters.
The atmosphere is key: One of the benefits of using a professional property manager is that they will have an extensive network of qualified professionals that can help with everything from repairs to finding quality tenants.
By using a reputable company, you can be assured that your rental property will be taken care of and that you’ll have peace of mind knowing it’s in good hands.
Things That Could Go Wrong When You Do It Yourself
When renting out your property, doing it yourself can seem like a cost-effective way to save money. However, several things could go wrong if you’re not properly prepared. Here are just a few:
Damaged property: If you’re not familiar with properly repairing or renovating something, you run the risk of permanently damaging it.
Expensive mistakes: Using the wrong tools or materials can cost you more than you imagined.
More work than expected: Sometimes renovations can take longer than anticipated, so be prepared for this possibility.
Lots of time wasted: Trying to do too much at once could lead to taking up hours upon hours of your day.
Owning a rental property can be very profitable as long as you know what you are doing and take precautions against potential disasters – even when they come from unexpected sources!
The critical thing about renovations is that they aren’t something you want to do by yourself unless you have enough experience because there will always be accidents waiting to happen. So make sure you aren’t the one getting hurt!