Many Americans say that it's smarter to rent rather than buy, especially when housing prices are exceptionally high. This is a great indicator that running a rental property business is a valid decision on your part, as finding renters will be easier than ever.
As with all businesses, there are certain things you can do to improve your odds of success. We discuss some of these in the article below, so keep reading!
1. Don’t Try To Do It All on Your Own
This is the first warning all long-term rental property business owners will give newbies. The inclination of new rental property owners is to try and do it all on their own so they can save money.
But in the long run, this will harm you rather than assist you. The faster you can learn to delegate responsibility, the better for you. Also, building a team of reliable contractors, property managers, and accountants will make sure you start your investing career on the right foot.
2. Long-term Renters or Short-term?
This is a question you need to ask yourself from the get-go. There are pros and cons to both sides, of course.
If you are building a rental property business so you can be free to work on your hobbies or spend time with family, then getting long-term renters is the better solution overall. Less work and hassle on your part, which is key.
Short-term renters might be a better bet in areas where cottages and vacationers abound.
3. Walk Around the Areas You Wish To Buy Investment Property In
Robert Kiyosaki in his bestselling book, Rich Dad, Poor Dad, said that he would spend hours walking around or jogging through the areas where he wanted to buy property to see what the rental housing market in that specific area was like.
The point is that you need to learn about the rental housing market before you start splashing money around on rental real estate.
4. Take It Slow - Don’t Overextend Yourself
Be like the turtle, not the hare, when it comes to the rental property business. There's no need to rush into your decisions because you are afraid you are going to miss out on a potential deal.
Follow Richard Branson's lead when he said, "Opportunities are like buses, there's another one coming along very soon."
The less you overextend yourself, the stronger your rental property business will be, and the better you will be able to weather any downturns in the real housing market.
Start Your Rental Property Business off Right
Financial freedom comes at a price, but if you follow the tips laid out above, you shouldn't pay too steep a price to have a successful rental property business under your name.
Once you are an expert at the game, it will be smooth sailing from then onwards.
Ready to relieve some of the burdens off your shoulders? Contact us today for full-service property management in the Jacksonville, Florida area. We will take care of it all for you, from tenant screening to evictions.