Investing rental property is a great long-term investment. However, you have to prepare yourself before you start buying a house for rent. Although it can provide you with a huge passive income, being a landlord is no easy task. You will need sound property management plan and skills if you want to survive in this business.
One of the biggest concerns about owning and managing rental properties is finding tenants for them. You have to make sure that the houses are always occupied to prevent profit loss. You also have to screen your tenants carefully and ensure that they pay the rent on time.
One of the tried and tested methods of ensuring continuous occupancy in your rental properties is to invest in recession-proof housing markets. A good example is the student housing market. What’s good about the student housing market is that your rental properties are always in demand even if the other real estate markets are in a slump.
In addition, you will never run out of people who will occupy your rental properties since there will always be students who are going to look for a place to stay into during the school year. Although they may leave after a year, you can easily find replacements for them once the new semester starts.
You should also consider investing rental property located in areas with upcoming urban development projects, particularly new factories and industrial districts. Lured by the prospects of better salary and work environment, people from other cities and states are expected to trickle into the area where an industrial facility is to be constructed. With the sudden boom in the population, new homes and rental properties will be very much needed.
But before you start investing rental property, make sure that the house you are targeting has low maintenance costs and it complies with the zoning and fire codes to prevent problems with the local government. Avoid rental properties that require too much work because it can eat up a huge chunk of your investment capital. However, you shouldn’t bet your money on houses that are about to collapse because you’ll get lots of complaints from your tenants. As much as possible, choose properties that are less than 20 years old.
By playing your cards wisely, you can make tons of cash through investing rental property. For a more comprehensive report on managing rental properties and investing in real estate, go to www.REIWired.com.
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Help answer the question about property managers
Where can I get a list of property managers in Southern Cali?My company wants me to put a list together is there some web site that lists them for free??
It needs to be commercial property management companies.
I was a property manager for a major company in Vancouver and was not required to become a memeber of any organization.
I believe there is a certification process, however, and they may have an association with that licensing.
In this market, property management is becoming much more popular as a way to begin your real estate career. There are a few different formats – will you be working for an apartment complex as an employee, or as an independent PM for a variety of income property owners? An apartment complex will have its own rules and possibly a training program for you. An independent firm will not, and will expect you to know a bit more.
It's a fine line – you have to have a good relationship with the tenants, but you also have to be firm enough to turn down those with bad credit or insufficient income, and there are some uncomfortable situations like evictions that have to be dealt with, too! The better you are at marketing to and selecting good tenants, the fewer lousy ones you will need to handle. Look up your state's landlord/tenant laws and know them well. Join the local rental association as well – there are usually people there who have a wide variety of experience and can offer good suggestions.
There is a huge need for professional service-oriented property managers. I hope you become one!
Actually, there are good associations around the Philippines. But I only know one property manager. You may call his mobile number at 09175386590. His name is Glenn. Hope I helped a little. Cheers.
Great info! Thanks…keep em coming!
Good Job- please do more…I want to get some
“rules of thumb” for property costs/expenses to
rent ratios…”best” size/value homes to use as nice rentals…is it smart to buy rentals with cash?…(or small mortgages?), Thankyou
Fees can be either based on a % of rents collected or negotiated as a flat fee. If you have only 1 property, I would negotiate a flat fee…some real estate brokerages also offer property management services..call around your area and enquire….
I have been extremly busy these last few months, once i have some more time on my hand i will definitely finish the series.
so where are the rest of the video’s? Good info, thank you for the blog
You can look up CA Landlord Tenant Act online and read for yourself.
I can't imagine any state not requiring you be given a copy of a lease that obligates you.
you're screwed if it's in your lease, sorry to say. If you asked them about the condition of it prior to the signing, and they lied to you, that's a different story. But, I think you're gonna have to cough it up.
Last minute vacations are your only hope, that is if you can get a reliable contractor to do your work upon a phone call and have decent tenants or slow courts. Good luck, thou, money is good and you get a little more freedom than your average 9-5 job.
Lord, give me the strength to deal with dead beats, inconsiderate tenants , morons, jerks, rude people, etc…
and may they pay their rents on time, amen!
I believe they charge 10% but some charge only 5%. Check around
Great video! Fantastic and clear explanation of the tax brackets and taxable income.