Tips for Buying Your First Rental Property

1
Tips for Buying Your First Rental Property
2
Buying a rental property can be beneficial
decision to enjoy the return on investment in
future.  If you taking these decision wisely, you
can enjoy earning coming from the rental property
and also consider these earing as a supplement to
your retirement. But sometimes your one mistake
can cost you lot when buying a home. Investment
in rental property can be risky if we are not
aware of the things which we needed to being a
landlord.   Here is the most important tips given
for those who are buying their first rental
property.    1) Are You Comfortable as a
Landlord? Before taking decision to buy rental
property make it clear that you are comfortable
as a landlord. Because landlord have lots of
responsibilities like understanding basic renter
law, solving the tenant issues. Managing home
maintenance like home repairing, sewage leakage,
water issue, and other issues. The landlord have
to bear all this repairing and maintenance cost
and it can eat your profit.   
3
   2) Clear your Personal Debt Before buying a
rental property First clear your personal debt
before buying a rental property. This is also
depends on the situation. If your interest on
your debts is higher than earning from rental
investment then it is advisable to clear all
debts like unpaid study loans, bank loans, or
other debts.   On the other side, if youre
earning from your rental property is higher than
your debt interest. Then no need to clear your
debt.    3) Select property which fits your
goals Before starting your search for rental
property make your goals clear. Some real estate
property you will give you better for cash flow,
but other you will find which might be cost you a
little more. Calculate your budget and monthly
maintenance cost and repairing cost then
according to that search the property which fit
in your goal.  
4
4) Work with a Property Management Company If you
want more tenants for your rental property, take
a help from a property manager. Property managers
closely deal with renters, and they maintain data
of renters according to their location
preferences, paying capacity, and according to
their expectation. They advise you for rent also
that how much you can expect from your properties
according to the market scenario.   5) Try to Buy
a Low-Cost Home It is advisable that when you are
searching for a rental property than purchases a
home at a low cost. Because when you are buying
an expensive home than maintenance cost and
repairing charges will also be high.  And it is
landlords responsibility to bear all maintenance
and repair expenses. So roughly calculate
maintenance and repairing cost according to the
home. 
5
6) Choose a Location near Amenities This another
important aspect while hunting for rental
property. Give priority to the location and
amenities available because this will attract
more and more tenants for your rental home.
Always select the location which is close to
public transit and amenities should be available
near.  Find the location with a low crime rate,
and safe environment. Availability of amenities,
such as store, parks, restaurants and malls
nearby in the location.           7) Calculate
Operating Expenses Another major aspect to look
in which searching for rental home is to
calculating operating expenses. Because landlord
has to bear all maintenance and repairing
charges. Operating expenses of a new home can be
between 35 and 80 of your gross operating
income. For more easy understanding, here you can
implement the 50 rule. If the rent you charge
for your home is 2,000 per month, expect to have
to pay 1,000 in total expenses.  
6
8) Talk to the Neighbours During your property
search, talking with the neighbours can be the
great source to know more about the locality and
neighbourhood. If you buy your rental home near
universities then that will be ideal locations
because many students rent a home for a long time
until their study. You will have chances to earn
more return on your investment.    9) Get Advice
from Other Landlords Keeping a good tenants is an
art. Taking the advice from other landlords, it
can be an easiest ways to understand the roles
and responsibilities of a landlord and how to
handle their queries. They will share their
personal experience as a landlord and what to do
and what things to avoid. This advice will help
you avoid the mistake and it will also reduce the
chances to lose your renters.  
7
10) Put yourself in the renters shoes If you
want to attract more renters to your home then
think like a renters. Putting yourself in the
renters shoes, is the best way to understand
about renters requirements. Imagine yourself as
a renter and now think what facility needs to add
to home. This all are the important aspect to
consider before buying your first rental
property. Set the goal before making purchase.
Calculate your maintenance and repairing cost,
also understand the depreciation. To become a
good landlord take Advice from Other Landlords
and learn from their personal experience. Hope
this advice can be helpful while you are buying
your first rental property.
8
Thank You You can also check out are related
article
Top 10 Home Renovation Tips in Your Budget
How to avoid the most common mistakes while
buying a home?
Buying a Home After Retirement? 3 Things to
Consider
Read More