Rental businesses are often touted as one of the best investments available. It is true that you can make decent money and grow your net worth. But when 35.8% of rental businesses fail in the first five years, there isn't a guarantee of success.
You need to follow good practices when you have homes for rent. Follow the essential rental property tips below to maximize your chances of succeeding.
Run a Business
One of the biggest things to remember and a great piece of NY landlord advice is to treat your rentals as a business. Yes, you may buy a home as an investment and rent to make extra money. But that doesn't mean you aren't also starting a business when doing this.
Set up separate business accounts and treat it like any other business. Doing this will help you think about your rentals differently and make more informed business decisions.
Find Great Tenants
You can't run successful rentals without great tenants. Even if you have a great property, the wrong tenant will cause nothing but headaches and may cost more money than they bring on.
Focus on your tenant acquisition and screening when looking through rental property tips. You can create several checklists to help you make the best decision.
Price Things Right
Although rents have increased a lot over the past several years, that doesn't mean you can charge whatever you want. Renters are already feeling the squeeze and may not feel great about paying even more for housing.
You can only charge as much for rent as the market can bear. Look at the other rentals in your area to see what others charge. Stick to the average rent price to ensure you get rental applications.
Manage Maintenance
Another part of running rental properties is keeping them in great shape. Your tenants rely on you to maintain a suitable place to live. You risk unhappy tenants, extended vacancies, and potential legal issues if you don't.
Create a schedule to manage maintenance to keep your home in great shape. It's also smart to form relationships with local contractors to ensure you have help managing things.
Use Property Management Companies
You can handle much of the property management process on your own. But at the same time, there are a few occasions when there may be more work than you want, or you just want to pass the work on to an experienced team.
There are professional property management companies that can help. Don't hesitate to look for the ones in your area to help with as much of the management process as you need.
Manage Your Homes for Rent
Putting homes for rent on the market is a great way to make extra income and grow your net worth. However, when you do this, you must engage in the right property rental strategies to ensure you get the most value for your money. Follow the homes for rent guidance above to ensure you succeed in real estate.
Are you looking for help that will help you follow these landlord success tips? At PMI New York City, we offer several services to rental property owners to help them properly manage their rentals. Reach out today to learn more about what we offer.
