How to prepare your investment property for rental
Property investors anticipating to get positive rental income and have long-term tenants must prepare their investment property to ensure that it is attractive to tenants in the area. Therefore, proper presentation and maintenance of the property are essential.
Thinking of how to prepare your investment property for tenants? Follow the following steps:
Examine the Rental Property
Hire an expert to check if any major repairs need to be fixed. Have all the appliances in the property inspected for wear and tear. In case of any damage or anything is performing inefficiently, there is a need to replace or repair it. Fix all the problems before advertising the property to ensure that it meets all the current safety guidelines.
Enhance the Property’s Appearance
Investors must ensure that their rental property is presented well from outside to inside, to avoid putting off potential tenants. Ensure the property is tidy during inspections to create a good first impression.
Add a fresh coat that is warm and appealing. The interior colors should be neutral and calm to make it easier for future tenants to match their furnishings. Do the landscaping and mow the lawns if necessary. Add value by installing air-conditioners, allowing pets, providing fast internet and other additions that can attract tenants.
Pricing
The cost of maintenance should not exceed the value of the property. Investors should answer the following questions before setting the rent rate.
- Is the property located in a low-income or high-income area?
- What is the condition of the property?
- Are there mortgage payments that need to be settled? If yes, within what period?
- What are the amenities around the property?
- What are the projected utility rates?
Have all terms and conditions set out in a rental agreement. It provides the two parties with security and peace of mind.
Finding the Right Tenants
Finding tenants who will comply with the property’s regulations is not easy. Doing a proper background check helps investors to find the best tenants. The property owners can do it themselves or hire a property manager to help with the screening. Advertise the property in the best light to reach the targeted tenants.
Making the right investment decisions at the right time helps property investors to get good returns in the long run. Check out additional tips that may be useful in preparing your investment property for tenants.