Invest in Your First Property Using These Essential Tips
Purchasing an investment property can initiate an entirely new career, or it can provide steady passive income while you focus on other things. No matter what your goals are for the property, you’ll want to make sure you understand everything that comes with it, including how to set a realistic budget and whether you’ll be able to take care of repairs and other issues yourself or if you’d rather benefit from having a property manager.
Finding the right property can take a little time, but you can save yourself a lot of trouble by utilizing resources like those offered at ODOS Properties & Partners. Here are a few things to consider when you’re ready to step into the role of property investor:
Make sure you’re protected
Before you begin your search for the perfect investment property, it’s a good idea to make sure your business and personal assets are protected by forming a limited company. A limited company is the best way for small business owners to establish a structure while ensuring a measure of security in the event of litigation, and it also provides multiple tax benefits as well as some flexibility with daily operations. Even better, you don’t have to go through a costly attorney to form your Ltd. Simply hire a formation service to take care of the paperwork for you. This will give you some peace of mind as you move forward with your company.
Do your research
When it comes to finding the right property, you’ll want to do some research on the area you’re interested in first. This means finding out how much the average sale price is for homes in the neighborhoods you like, learning more about things like safety and traffic patterns, and how quickly homes sell.
Decide what you can handle
Owning an investment property is a pretty big undertaking, so it’s crucial to think about what you’ll be able to handle right from the beginning. Once you’ve found the right home and have made any necessary repairs or updates, how will you maintain it? Will you have time to devote to the process of booking clients or screening tenants? Hiring a property manager can be extremely helpful, especially if you live far away and won’t be able to handle an emergency in a timely manner.
Throughout your time preparing a property for rent and after, it is imperative that you keep good records. Keeping track of and managing accessibility for dozens of papers can be a challenge. Fortunately, you can scan multiple pages into one PDF with these steps. Once you’ve scanned the necessary documents, you’ll have easy access to a digital copy of your records. This will also save you headaches down the road if you need to send out copies.
Help renters find you
When you’re ready to start renting out your property, how will renters or tenants find you? Think about a marketing strategy that will help you get your listing in front of the right people, as well as how to show everything you have to offer. Creating an informative website is essential, as this will allow you to showcase the home–both inside and out–and will provide a way for potential renters to contact you. It’s also a good idea to look for real estate sites that will list your property for more exposure. Learn how to take great photos, and create a recognizable logo that renters can learn to trust when they’re looking at properties. This is especially beneficial if you’ll be renting out the property to multiple people throughout the year since it will help you garner repeat business.
Taking on an investment property is a great way to make extra money or even to start a new, lucrative career, but it does take quite a bit of work. Creating a plan from the very beginning will help reduce your stress as you get started so you can enjoy the process.
Ready to take the leap and look for a property? Get in touch with the pros at ODOS Properties & Partners today.
Written by Katie Conroy, for ODOS Properties & Partners.