In 2022, property investors accounted for one-third of all of the homes purchased in Texas.
If you're a brand-new real estate investor, you may be wondering what to do after purchasing a rental property. There's a common misconception that becoming a real estate professional gives you passive income and a lot of freedom.
This couldn't be further from the truth. Owning a rental property is constant work if you try to do it all yourself. In today's post, we'll explain what happens after you purchase a rental property and how hiring a property manager can unburden you, so keep reading and consider your options moving forward.
Performing a Rental Property Valuation
You should always try to perform a rental valuation before you purchase a property. In a good rental market like Denton, however, you can be sure that there's money to be made. What a rental valuation will help you determine is how much you can feasibly charge your tenants.
The average rent price in Denton is over $1,300, but how much you charge will depend on numerous factors. Doing market research to look into other similar homes in similar areas will give you a decent idea of how to price your rental and how much money you can make off of this investment.
Finding Great Tenants
After you price your rental, it's time to showcase it to potential renters. Rental marketing involves taking professional-quality photos of the unit and writing a detailed listing of the rental and the local area. You'll then need to get the listing up on all of the important rental listing sites.
When you start getting applicants, you need to screen them so you're left with the best candidates. Another common misconception for first-time landlords is that filling your property is always better than a vacancy. If you end up with a bad tenant, they'll end up costing you a lot of money.
Perform background checks to look into applicants' criminal and financial history. Doing this and calling references will give you a few of the best tenants to choose from.
Once you've got great tenants in your unit, it's up to you to keep them happy. This is constant work that involves attending to tenant requests for maintenance, collecting rent, and dealing with other issues in and around the property.
When your tenants are happy, they're more likely to renew their lease. The longer you keep your rentals occupied with high-quality tenants, the easier and more lucrative your investment will be. It's a lot of work, but it's work that pays huge dividends.
Property Management Helps the Real Estate Investor
If you're feeling overwhelmed by the responsibilities of a real estate investor, it might be wise to hire a property manager. Property management companies can handle all aspects of running a rental property, from tenant screening and rent collection to maintenance and eviction protection.
At PMI United, we're part of one of the nation's largest property management firms. To learn how we can help you manage your first rental property, don't hesitate to contact us today.