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If you’ve never considered making investments in the property before, perhaps now is the time. Purchasing a home might not be as easy as you think, but whether or not you are just looking for a starter home or looking for the perfect house to plant your roots, there is much to gain.
Many people have various reasons for purchasing property, from wanting to become landlords, to eventually selling their starter homes in exchange for even an even bigger place to renting out space to earn extra cash. Maybe you’ve dreamed of owning the perfect home in the perfect neighborhood, but you’re not exactly sure how to go about it. Rest assured, anyone can own property if they know how to properly execute a plan that will pay off into the future.
#1) Everything that Can Go Wrong, Will Go Wrong
Depending on the type of property that you purchase, there may be some things to consider. Some people love to improve fixer-uppers while others search for move-in-ready investments. How old the home is, how well taken care of it was prior to you stepping foot in it all depends on maintenance needs that might occur later.
Older homes aren’t always rickety but sometimes creaks and cracks can set in overtime. It’s always smart to have money left over in your savings for fixing up any issues in your home. If you are into performing major work on homes, then you will want to consider the costs it takes to make any renovations.
Move-in ready homes are exactly what they sound like- homes that require very little to no maintenance at all. Some people don’t like the idea of having to fix up a home themselves, so they prefer a home that is already in tip-top shape. Either way, you go, it’s better to save money for a rainy day because no matter how perfect the home seems, you may want to may change or make improvements later.
#2) Renters Can Be Destructive
If you’ve decided to become a property manager and lease or rent your space to prospective renters, then you need to be prepared for the worse. While some people make perfect tenants, others can virtually destroy the humble abode that you set up for them, making your property value go down and increasing costs for you.
Most landlords will meet up with interested tenants to get a feel for them. While those clients may seem to be o.k during the interview, they might not be the tidiest people in terms of cleanliness. This is why it’s always important to be prepared and have enough savings for fixing things like broken windows, holes in walls, and dirty carpet, or even a destroyed lawn.
Perform frequent walk-throughs in your rented space. Try not to think of it as an invasion of privacy, but as a means to keep your place the same way that you had it when your tenants moved in. Always let your tenants know, at least 24 hours ahead of time that you will perform a walk-through so they are prepared to spruce up. There are also laws set to protect tenants from being invaded by their landlords, in which case it’s a good idea to check with tenant codes in your area so that you don’t inadvertently infringe on their rights.
On the upside, a great tenant is a great investment. Leaving a place how you found it leaves little responsibility for the landlord to fix anything and any money accrued during the lease can go in the landlord’s pocket, not towards maintenance. Having an exceptional tenant is less work for you and someone who takes care of your property as if it was their own is always a pleasurable experience. You might even consider slightly lowering their rent or not raising it as a means to get them to stay there.
#3) Don’t Be Afraid to Call the Shots
Landlords sometimes get the short end of the stick, making them less than pleasurable to work with. Have no qualms about setting strict rules and regulations to your property. After all, you’re the one whose purchased it and setting boundaries only makes it easy for you.
Life happens and sometimes tenants simply don’t have enough money or they may accidentally break something, particularly if their is a family with small children. However, setting boundaries lets your tenants know that rules matter and if they don’t follow through with them, then there are major consequences. It’s fine to be nice and occasionally going easy, but being taken advantage of is another thing. be diligent in your requests and follow through with the lease agreement, it’s the only way to ensure that you will receive your dues in a timely manner.
Being firm isn’t being a mean landlord. You have business to conduct and although you might feel the urge to give them a break every once in a while if they’ve been diligent on their end, you should also be stern in your requests.
Owning a home is one of the most enjoyable experiences in life. However, there are many things to consider when you want to invest in property. It’s not only a matter of buying a home and moving in, but other important factors have to be considered to get the most out of your home, whether you decide to rent to someone or buy.
Have you ever purchased a home before? Do you rent? What are some things that you do to make your property better. Have you already purchased your starter home? Tell us what you think of the above article and share!
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