Property ownership has always been a good investment. And right now, with the shortage of available homes driving the market, it makes sense to hold off selling a home while allowing the equity in it to grow.
That’s why so many homeowners are choosing to rent their homes out instead. Long-term rental properties are becoming scarce along with available homes for sale, creating a thriving market for rental properties.
- Owning rental property is a great way to supplement your income and can help pay down your mortgage sooner.
- If your home has been on the market for a long time, you can postpone selling the house until sales in your area become more favorable. If you inherited a property, but don’t want to sell it or live there, using it as a rental property can be like having a second job!
- You could qualify for some tax deductions if you turn your home into a rental.
- Managing a rental property is time-consuming.
- You’ll be responsible for expenses like real estate attorney fees, maintenance costs, including homeowner’s insurance, and more.
- If you don’t live nearby, you may have to make frequent and costly visits.
Should You Hire a Property Manager?
There are plenty of good reasons why you might want to hire a property manager to take over your rental management duties.
- Property management services have systems in place to run background checks and screen possible tenants.
- Many management companies have their own maintenance staff and known contractors who work with them, probably at a lower rate than you could hire them for.
- They’ll list your property for you.
How to Advertise Your Property
Your rental listing should highlight all the best features of your property. It should be informative, allowing prospective renters to make an informed decision. Include a short description of your property and some great-looking photos. It’s smart to hire a professional real estate photographer to take the photos since those will be your primary selling tool.
Where to Advertise Your Property
Like with any business, the way to reach the most amount of people is through social media. Let everyone on all your social media sites know that you have a property to rent and ask them to share it on their own pages.
You can create Facebooks ads for free and it’s easy to do. You simply use editable templates where you can include your own photos, fonts, colors, and text to create an eye-catching ad. Once your Facebook ad is completed, you can instantly download it.
Making it Rental Ready
You may need to invest in upgrades for your house to increase its appeal and rental rate. You don’t have to complete a home makeover but start by creating a list of the improvements you’d like to make over time. Immediate upgrades like adding a fresh coat of paint and some landscaping are a must to attract renters. So, too, is ensuring all major appliances like your HVAC systems are in good working order.
The Business End
Depending on where your property is located, you may be required to obtain a permit for residential properties that operate as rentals. These usually aren’t expensive but may be a necessary step in your area.
Look into forming your property management business as an LLC. This will offer protection of your personal assets and can possibly reduce your tax burden. It’s something you can do yourself, but since rules vary from state to state, check the specific requirements for your property’s location.
For Property Managers Who Need a Coach
The Property Management profession is a wonderful one with lots of opportunities to be of service, but it is also a highly stressful profession that can lead to burnout very quickly. Hiring a professional business coach can help you to stay focused on what is important for your property management business. Contact The Property Management Coach to see what she can do to help you.
Learning about the rental market in your area and evaluating whether you have the time and resources to manage a long-term rental should be your first concern. Then contact property management companies near you to see if that’s a viable option. Making the necessary upgrades, taking advantage of social media to market your property, and properly structuring your business should give you most of the tools you’ll need to turn your property into a successful long-term rental.
Contributing Author – Brad Krause can be reached at [email protected]
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