The real estate market has a huge amount of potential for those looking to secure their financial future. With the right approach, you can make a good income from rental properties.
If you decide to become a real estate investor, there are various ways you can proceed. It's important to use real estate strategies that line up with your investment goals. This can seem quite daunting when you're just getting started.
In this guide, we'll take a look at some of the things you should do after investing in Denver property for the first time. Let's dive in.
Renovate and Repair
The first thing you should do is make any repairs or improvements that your property needs. You'll have a much easier time finding tenants and getting a good price if your property is in good condition.
Consider what upgrades you can invest in to make your property more desirable. These can increase property value so you can charge more for rent and make a better ROI in the long term.
Valuation
Determine the value of your property so you know how much to charge for rent. Setting the price too high will drive away renters and setting it too low will result in smaller profits. A property manager can perform a professional valuation to give you an accurate idea of your property's worth.
Market Your Property
Now you can start promoting your property and trying to attract renters. Make sure you use high-quality photographs, ideally taken by a professional. The description should be engaging and contain all of the information that potential renters would need.
A property manager can take over this duty. They'll be able to attract more tenants so you can start making money from your property.
Screen Tenants
Finding good tenants is vital, and you can do this through tenant screening. It involves looking into an applicant's background to make sure there aren't any red flags and that all the information they've given you is correct. It can help you avoid tenants who have a history of things like:
- Unpaid rent
- Property damage
- Criminal activity
Maintain Your Property
Once your tenants move in, you'll start generating an income. Things don't end there, however. You need to continue to manage your property, and maintenance is one of the most important elements of this.
You should set up a regular inspection and maintenance schedule. Doing so will help prevent any major issues from arising, saving you money in the long run. You may then want to look at purchasing more properties to grow your investment portfolio.
Becoming a Successful Real Estate Investor
Your first property is the start of your journey on the road to becoming a successful real estate investor, but it's important to follow the above tips so you can maximize your profits. You'll then be able to grow your real estate business and bring in more income over time.
Walters and Company Property Management is a full-service property management company based in Denver. Our focus is on residential and multi-family properties and we have over a decade of experience in the industry. Take a look at our property management page to find out more about how we can help you reach your investment goals.