Due to low inventory and rising prices, many people in North Carolina are renting instead of buying for the moment. If you have a spare property sitting around, now is a great time to rent it out. A rental analysis may show that you can make a good amount of money off of it!
Being a landlord isn't as easy as it looks, however. Even getting started and getting your first tenants is a challenge. Making a profit is even harder.
We're here to offer you a few helpful insider tips that can help you get the ball rolling on your new life as a landlord. Read on to learn more.
Start With a Rental Analysis
It's always helpful to start with a rental analysis when you buy (or are about to buy) your first rental property. A rental analysis is a process in which an investor looks at a property to discern how much money it could make (or how much they could charge for rent).
The investor will check things like how big the property is, where it is, what condition it's in, and what similar properties nearby are renting for. Then, they use this information to estimate how much money the property could bring in if they were to rent it out.
Set the Right Rent
After you've done a rental analysis on a property, making sure you set the right rent isn't too difficult. As a new real estate investor, your first rental property will turn into your income. You want to make sure that the price is right.
Research similar rental properties in the neighborhood to determine the appropriate rental price for yours. Make sure you're considering things like the size of the property, any amenities it offers, and the location. For example, even within the same neighborhood, a two-bedroom apartment with in-unit laundry will almost always be worth more than one without.
Aim for a rental price that is competitive and still reflects the value of your property. You may have to make some adjustments over time.
Screen Tenants Carefully
You should always conduct thorough tenant screenings to find reliable and responsible renters. Be as thorough as possible when you're still new and you don't know how to spot red flags.
You should verify employment and income, check rental history and references, and conduct background and credit checks. There is often some wiggle room, but you need to know that a tenant will be responsible.
Choosing the right tenants can help minimize the risk of late payments, property damage, and troublesome evictions.
Need Help With Your New Rental Property?
As a first-time landlord, you have so much to do! From your first rental analysis to getting your first tenants, there's a lot on your plate. It's an exciting time, but it might also be stressful.
A property management company can help. At Flagship Realty Group, we help Goldsboro landlords with marketing, tenant relations, and so much more. We'd love to help you too.
Reach out for a rental analysis and property management quote today.
