Setting Up a Profitable Investment Property, Step-by-Step
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If you’ve been contemplating investing in real estate, now is a great time to get started. According to Entrepreneur, an investment property can be an excellent source of passive income and will appreciate with time, adding up to overall positive profitability. That said, you’ll have to put in a bit of effort to find the perfect property and get it ready for rentals — or, down the line, a lucrative sale. Find out how to set up your investment property below.
Select a fitting location
A profit-worthy property needs to be in a place that people want to go to. The Real Wealth Network provides a list of areas worth investing in based on appreciating property values. The list includes cities from Albuquerque to Atlanta. Consider the neighborhood, too. If you plan to rent long-term to families, the school district is a consideration. Alternatively, if you want to capitalize off of short-term rentals to tourists, you want to be near attractions.
Choose the right property
Your target audience is also a consideration when choosing a specific property. For instance, if you want to rent to families, multiple bedrooms are a must. When picking a house or apartment, practical factors like the price and property condition are also considerations. Make a budget in advance and determine how much you can afford to put into the property. Remember, once you purchase it, you’ll still have to invest in things like decor.
Equip the interior for your target audience
If you plan to rent out your investment property on a short-term basis, you’ll have to furnish it. Lodgify provides a comprehensive vacation rental inventory checklist covering everything from kitchen utensils to towels. If you want to offer long-term rentals, you may still consider offering the property with furniture. This allows you to ask for a higher rent.
Enhance the exterior for greater marketability
SFGate explains that landscaping can increase property value. A fence is one practical asset, especially if you want to cater to people with pets or kids. Connect with Angi fence contractors in your area, getting multiple quotes and reading reviews to find the one that best fits your needs. Whoever you choose, make sure they’re licensed and insured. On average, expect to pay about $4,500. However, note that prices vary widely depending on materials, size, installation site, and other factors.
Set up your property management team
Whether you rent it short- or long-term, your investment property will require management. If something breaks, who will handle repairs? Set up a support team including cleaners, plumbers, and handymen. Excellent PHM offers reliable plumbing, heating, and mechanical services in the Colorado Springs area that you can count on. You might also consider hiring a general manager to coordinate the various services needed to maintain your property.
With all the logistical and administrative details taken care of, you can start marketing your property. Property Ware recommends tailoring your marketing to your target audience. So, if you’re targeting couples looking for a romantic getaway, highlight romantic aspects like the hot tub in the backyard. When preparing your marketing materials, invest in top-quality real estate photography. Photography Talk reveals that bad pictures can be a deal-breaker.
With the right planning and investment, your property can be a lucrative source of additional income. Follow the guidelines above to set yourself up for success as a real estate investor.
Excellent PHM of Colorado Springs is dedicated to helping property owners keep their investments in top shape with comprehensive mechanical, heating, and plumbing services. See what happy customers are saying and call 719-393-9300 for service.