Even if you’re not new to real estate investing in Logan Utah, refreshing yourself on the basics can help you find areas to improve for an income boost. If you are a new investor, starting with the basics is the best way to build a solid foundation for real estate investing success!
While strategy implementation might change over time as property management technology improves, the best fundamental strategies rarely change. From applying the right amount of property rehab to sticking to your process for placing the best renters, investors who follow best practices (then repeat them) benefit from ongoing, long-term success.
What are the best real estate investing basics that any investor can use? Whether you’re seasoned or just getting started, start (or re-start) with these insights from the best property management!
Never Overlook the Importance of Location
When looking for a new rental property, start with the location. The best home with all of the right renter amenities won’t pay off for you if the property isn’t in an attractive Logan Utah location for renters.
Don’t get distracted by a property’s low price. Avoid rationalizing the purchase of an otherwise-perfect and almost-rental-ready property that isn’t near quality schools or plenty of restaurants and retail. Skip a potential rental that doesn’t have a walkable neighborhood and doesn’t offer easy access to highways, airports, and city-wide resources.
If it’s too good to be true—but too far from where the local renter population prefers to live—let it go and move on to another potential rental in a renter-friendly location.
Not All Fixer-Uppers Are a Smart Idea
Investors should expect to make “some” renovations on any new rental property purchase. Most homes on the market need a little work to attract quality renters with the right in-demand amenities.
However, starting with a property in need of significant repairs can be an expensive mistake. It can also be a horrible experience that ruins your enjoyment of being a real estate investor!
If the price is too low, chances are the property needs a lot of work. Look beyond cosmetics and work with the best property management company to analyze the home’s structure and potential renovation needs and costs. If the budget is too high and renovations will take weeks (or months) before the property is rental-ready, look for a property that requires less work to get it on the market to generate rental income.
Focus On Renter Wants
When considering the best upgrades for a potential property, remember to focus on what renters want. The amenities you love in your own home might not be the same as what Logan, Utah renters look for in a safe, comfortable rental property.
Don’t waste renovation budget dollars on expensive countertops, high-end hardwood floors, or pricey fixtures that renters don’t care about. They don’t want to overpay for a property that comes with features they don’t want or need. Work with a local property manager that understands the markets and what makes a rental property stand out from the competition and attract high-quality residents.
You won’t live there, so make sure your rental appeals to the renters who will!
Never Place a Renter Without Screening (Thoroughly)
Even if your rental stays empty for several weeks (or months), never place a new resident without applying a thorough screening process. The risk to your property (and investment income) is too significant to pick a renter who looks “ok” on paper without digging deeper into their background and rental history.
While rental property owners must follow the law when choosing a new resident, they can legally look into critical background information to evaluate the quality of a potential renter. Your background screening should include:
- Credit history (with a minimum credit score requirement)
- Prior rental history (including defaults and evictions)
- Employment and income verification (with minimum income requirements)
- Criminal background
- Reference checks
- A valid ID
Screening potential renters and handling private data can be challenging without violating the law. However, skipping this process can leave you with a bad renter who doesn’t pay the rent or causes damage to your rental. Partner with the best property management company offers to handle the screening process, follow all regulations, and safely handle and store personal data for applicants.
Stick to the Basics With the Best Property Manager
Mastering these basics for every rental property and renter in your portfolio can become overwhelming. The best way to stick to the basics and maximize your income is to hire the best property management firm!
Reeder Asset Management delivers services that cover Property Investing 101—and more! Never worry about choosing a bad property, making the wrong upgrades, or placing a terrible resident. We guide new and seasoned investors through every aspect of successful rental properties. Contact us to learn more about everything we do to help investors make more money with frustration-free management.