The most important do’s and don’ts that all rental property owners should consider!
You have to do many things to ensure your investment property stays profitable but these are the top three tips to help you enjoy a more profitable property investment.
TIP #1: DO Crunch the Numbers!
Rental property owners know you must consider obvious expenses such as mortgage, taxes, and insurance. However, it is easy to overlook less common expenses like HOA fees, maintenance costs, and unit turnover costs.
- DON’T make the mistake of assuming your property will always be rented. This is where unit turnover costs come into play. Naturally, your property will spend some time vacant during the transition from one tenant to the next. You’ll have expenses associated with getting your property ready for the next tenant as well as the expense of marketing the property.
- DO factor in all foreseeable expenses and crunch the numbers.
TIP #2: DO Comprehensive Tenant Screenings!
Of course you want to reduce the time your rental property is vacant but not by taking a shortcut that could cost you big in the end.
- DON’T skip tenant screenings. This isn’t the place to save a few dollars. Having the wrong tenant can cost thousands of dollars.
- DO comprehensive tenant screenings. It will make your life easier and save you money in the long run.
TIP #3: DON’T Get Stuck on the Price!
Some property owners make the mistake of losing out on a month’s rent because they’re chasing another $50 to $100 a month in rent. Missing out on a month’s rent almost always costs more than you’d gain holding out for that higher rent.
- DON’T get stuck on the price.
- It’s better to go down in price and rent your property sooner than to hold out for more rent and not have that consistent income.
These tips will help you make the most of your investment while avoiding common mistakes. There are many things to consider when investing in rental property. Trust the experts at All County Heartland Property Management. We work to make owning rental properties easier!