Being a property investor is something that many of us have dreamed about idly as what we would love to do if only we could. However, it’s actually something that is well within reach for many as long as they know what they’re doing and are well educated about the housing market.
There is a romantic vision of a person buying up dilapidated homes and fixing them up before making a tidy profit, but things don’t always work out quite that smoothly – and many forms of property investment can be quite complex. For this reason, it isn’t something to take lightly, but it is something that with the right research and the right experts backing you up, is perfectly possible – and a great way to make a bit of money!
If you’re thinking of investing in an area like Rochester, NY then the good news is there is an ever widening market here with plenty of opportunities for new investors to come in and make their mark. With that said, to avoid flying in blindly and losing money, I’ve put this handy list of 4 key things to consider before going down the route of becoming an investor. With these in mind there will be nothing between you and your dream of financial security in the property market.
More important than any other aspect of managing properties for those looking to enter the market as a rental landlord is making sure you have good tenants. What we mean by that is a tenant who pays their rent and is unlikely to cause disruption or damage to either your property or those that adjoin it. This is easier said than done, but when they are in place your income will be regular and consistent.
Managing your relationship with the tenant is a two-way street. Tenants also have options to move out of your property if you’re not fulfilling your role as a good landlord, so regular dialogue and effective property management is a must if you’re going to keep your good tenant happy and in-situ.
There are a number of crucial things to take into account when getting a tenant in, first among these is the screening. To ensure that they are able to meet the rental requirements and to protect your investment, you’ll want to carry out a screening which may involve a credit report. You’ll also want to make sure you have a mutually beneficial lease agreement, and a security deposit to protect yourself against any damage the tenant might cause. These aspects can be time-consuming but when they are in place your property will start paying dividends.
With the best will in the world, things do sometimes go wrong, and even the best-intentioned tenant can cause accidental damage to your valuable property. This can be devastating and potentially put you off investing in the first place. For this reason, getting good landlord insurance is an absolute must. If you provide the home on a furnished basis then this insurance will protect the contents of the dwelling as well as the building itself.
If the rental income you make on the property is your main source of income, then it may also be wise to ensure that you have taken out an insurance policy that protects that income. If your tenant falls on hard times and is unable to make rent, then you can ensure that you are covered for such circumstances.
As well as the basic responsibilities you have to be a good, ethical landlord, there are legal rules and regulations that must be followed – although these may vary by state.
You will be required by law to handle the tenant’s security deposit in a certain way, and to ensure this is protected for the duration of the lease. You will also be required to ensure that your practice as a landlord does not involve any discriminatory behaviour, and that your property is safe and well maintained to a certain level. Health and safety codes must be adhered to otherwise your tenant may be able to break the lease early at no cost.
Another key point to remember is that there are laws that landlords must take into account when the need to evict a tenant arises.
For those looking to invest in the Rochester rental market, the above points are all key things to keep in mind before making that decision. As you might be realizing, there is a lot more to this than many people first assume. For that reason, I always advise getting a rental management company to take care of the more arduous aspects of the process, allowing you more time to work on your next project! At Torres Turn Key we specialize in helping landlords get the most from their properties, including managing tenant relationships and ensuring that the legal and insurance requirements for the landlord are met. The administrative aspects of the process are enough to put many prospective landlords off investing, but with the right property managers on your side the process becomes that much easier.
Let Us Help You
At Torres Turn Key we have years of experience in the housing market, and are well versed in what is required to turn a tidy profit in Rochester’s booming scene. Our experience and professionalism can help ensure that you’re getting the best tenants and your regulatory requirements are all up-to-date. We can take care of the tiresome responsibilities that put off many would-be property investors from making the step into the market. Our goal is to get your money working harder for you, and to make your property generate the maximum amount of income possible. If you think this is something that you’d like to talk about more, get in touch with us and let us help you take that first step.