Investing in real estate and leasing properties to tenants can be a very lucrative endeavor, which is why many people choose to become landlords.
You can use the income from your tenants to cover the mortgage repayments, property maintenance, and then continue to receive a steady stream of income and huge profits.
However, there is a lot of work that goes into preparing a property to lease, especially if you have bought a rundown house or apartment that needs renovating before it can be habitable. If you’re interested in pursuing this, here are some tips to help you begin your journey as a new landlord. You can also check apartments for rent in Arlington to know how much apartment units in the city cost nowadays.
What Can You Afford?
You might find that a rundown house comes at a very low price, but you should always consider the extent of the work that needs doing, as this can get very, very expensive – particularly when it comes to structural issues.
Always get the property inspected before you buy it, and use the report from the inspection to help you determine the costs of the renovations.
You can then apply for a loan from the bank to help you carry out the necessary repairs on the property and improve the overall aesthetics. Alternatively, you can search the term private money lenders near me if you would rather not get a loan via a bank.
Making the House Safe for Tenants
As a landlord, it is your job to make sure that the properties you lease are safe for your tenants. This will require making some special modifications to the house that, although they would help to keep you safe, you might not necessarily think about if you were renovating a property to live in yourself.
For example, having fire doors put in, fire blankets/extinguishers, clear fire exits, quality door locks, home security systems, window locks, fire alarms, gas detector alarms, etc. You’ll need to factor these into your renovation budget too.
While making sure that the property is safe for tenants is essential, you should also think about how you can make your property stand out and be more attractive on the market.
People will pay higher rents for better homes, so features such as having a private garden, more than one bathroom, a bigger kitchen, a gorgeous bathroom with a walk-in shower/big bathtub, good storage space, and so on are all things that can make your property more alluring to potential tenants.
Not only will you be able to charge higher rent, but the demand for these types of properties will also mean that your property will never be vacant for long.
The Location of Your Property
Finally, when you are searching for properties to invest in, you’ll need to be mindful of the location you choose. While sprucing up a dilapidated property and making it much more attractive will certainly pique people’s interest and make them willing to pay more for it, if it is in an undesirable location, this can be off-putting.
Make sure you are choosing an area that is relatively safe with good transport links and other local amenities, or even in an up-and-coming area, as this will likely mean the value of your property will go up in the future.
If you are interested in becoming a landlord and want to renovate an old property to lease, use these tips to help you plan for this more effectively and get the most you can out of your investment.