What's Next After Buying Your First Rental Property?

What's Next After Buying Your First Rental Property?

Starting a real estate portfolio is an exciting first step in your investing journey. The quicker you start renting out your first property, the faster you'll generate income.

You already know you need a real estate agent to buy a rental property. The same agent may even work for a property management company which is a great first start. These companies come with a suite of tools for growing portfolios.

Discover what you need to do as a real estate investor.

Assess Your Needs (and Create a Checklist)

Start with a thorough assessment of your needs. This part will help you save money as properties incur fees and taxes quickly. You'll want to fill those vacant units as quickly as possible while maximizing profit.

Consider the following points:

  • How much rental income do you want to make?
  • What is your budget for expenses?
  • Who are your ideal tenants?
  • What are the market rates for rent?
  • Do your properties need repairs?
  • Will you be living out of state (or the area?)

The first property may be the most challenging. You don't have the rental income yet to cover repairs and upgrades. Luckily, you can still receive home improvement loans.

Creating a checklist with the above points will help you budget and plan for a profitable rental portfolio.

Hire a Property Manager For Marketing

Next, find a property manager who can maximize your rental income.

Property management companies offer several tools, from marketing to tenant placement, ensuring your properties don't stay on property listings for too long.

Once your property is cleared for rent, your property manager will list it on top real estate sites like Zillow. They'll also host open-house events.

These above strategies are two forms of property marketing. Property managers may also use social media marketing or email marketing to reach leads.

Tenant Placement Services For Your Rental Property

Finding the right tenants for your investing property is everything.

High tenant turnover cuts into profits. It costs money to market properties, screen tenants, and repair units. Conducting thorough background checks mitigates issues with rent collection, tenant relations, and property damage.

An experienced property manager will go beyond basic tenant screening. They'll also interview past landlords to get a better understanding of rent history and behavior. You can also find out if a tenant intends to rent beyond the lease expiration date.

Your property manager is also responsible for renewing leases. Thus, you must be open to providing incentives to the best tenants. This may include free kitchen appliances, new bathroom fixtures, or a discount on the first month's rent.

Convenience is key. For example, PMI Sarasota has a complete dashboard that allows owners and renters to manage their tasks, from applications to rent collection.

Start Your Journey as a Real Estate Investor

Assess the needs of your rental portfolio before searching for a property manager. Next, learn more about a property management company's marketing and tenant procurement services.

PMI Sarasota has a full suite of services to help you as a real estate investor. Get a free rental analysis today or contact us to learn more about our real estate family.