Investing In Rental Property As A First-Time Landlord?

There are a wide variety of roles in this industry and a landlord is merely a speck in the ocean. However, a successful landlord may earn a salary that is equivalent to what three or four blue-collar workers earn per month! The property market is definitely a high risk, high reward investment for the inexperienced but the risk level can certainly be lowered. First-time landlords can certainly benefit from these tips and if you are one of them who wants to learn how to keep the revenues flowing in!

Check before you buy

A new landlord may not be familiar of what to check for in a home. It is thus useful to hire a home contractor or inspector to inspect the home and inform the landlord about his or her findings. The inspector will be able to look for termites, ants, structural problems and any other problems that the landlord is unable to detect or be aware of. Most sellers will cover any repair costs and the landlord can start to spruce up the home after the deal is made. This involves dealing with the problems that the previous owner did not address well and also giving the home a complete clean-up or total makeover.

Be prepared

It is beneficial for the landlord to keep track of the properties that they rent out. Contact the occupants and clarify if they would like to extend the rental period when a contract nearing its end. Proceed to source for new occupants if the current occupants decide not to extend the contract. This way, the home will not sit vacant for long and minimizing chances of lost profit.

Someone interested in your property? Don't be rash to act!

Whether you are investing or purchasing a home in Thailand or Miami, it is important never to be greedy especially if you are inexperienced or new to a market that revolves around the world of investments. A mistake many new landlords make is to lowball themselves – they offer an asking price that is too low to quickly secure or close a deal with a potential tenant. In doing so, they often lose more than they need to. Aspiring landlords should start at a respectable offer that is not too high and slowly work his or her way down (to their targets). The offer should be based on the condition of the home too.

Keep yourself updated

The economy fluctuates and rentals that the landlord charges have to adjust too. It is fine to charge more during a period of good economy but remember to lower your rentals during a bad period. This prevents your occupants from jumping ship too often!