There are approximately 48.5 million rental units in the United States. 14.3 million of them, or 29.5%, are owned by individual landlords with one or two properties.
Starting as a real estate investor is exciting, but your hopes will be dashed if you expect the money to start rolling in immediately. There's a long list of steps you have to take before you'll even see your first tenant.
Read on to learn what to do after buying your first rental property in Austin, TX.
Renovate and Maintain the Property
See if the fixtures, interior, or landscaping need any improvements before tenants move in. It keeps you up to code with local laws and regulations and helps you stand out.
Leaving it alone after that is a major mistake. Get the right insurance and hire professionals to cover inspections and repairs. This protects your investment and keeps your tenants happy.
Research the Rental Market
If you want to stand out from your competition, you'll have to get to know them. Check websites that advertise local properties.
Look at their amenities and features. Yours should be similar or better.
This also helps you charge a fair rental rate. It needs to be reasonable based on what other landlords are charging. You can also check the average income of renters in your area to determine what they can afford.
The rental vacancy rate in Austin is approximately 4.9%. Avoiding vacancies starts with property marketing which starts with property listings.
Use attractive descriptions and professional images to show the property in its best light. Share them in as many places as possible, including:
- Online listing platforms
- Social media platforms
- Local advertising channels
Tenant screening is essential for every applicant. Perform a thorough background check by looking into their:
- Credit history
- Criminal history
- Employment history
- Rental history
This protects you from getting anyone dangerous or disrespectful on the property. They're also more likely to pay rent on time.
Get a Property Manager
There's a lot to learn as a first-time real estate investor, and a property manager can be your mentor. They can also make your job easier by taking on tasks such as:
- Property maintenance
- Tenant screening
- Rent collection
There are a few questions to consider when looking for the best manager for you. Are they licensed and insured? How experienced are they? How easy are they to access and communicate with? Do they know all applicable local laws?
Their help can last as long as you remain a real estate investor. They can manage your first property and any others you purchase.
Where Can I Find Help as a First-Time Real Estate Investor?
Renting out your first property is an exciting venture. Be sure to renovate and maintain it, research the market, advertise the property, screen every tenant, and hire the right professionals.
The property managers at Monte Davis Property Management Service can help every real estate investor in Austin and the surrounding area have a profitable journey. Get started with a free consultation today.