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Apply These 4 Techniques to Become a Successful Rental Property Owner

Did you know that one in three Americans have less than $5,000 saved up for retirement? Or that 21% of Americans have no retirement savings at all?

Property Owner Learning to Be Successful with Help from Property Management Professionals in Roseville CA

Worse yet, for the first time in 57 years, 20% of retirement-age people are still working.

If you are close to retirement, we hope these statistics don’t ring true for you. However, if they do, or you’re looking for a way to supplement what you do have in retirement savings, you might consider looking into real estate investing.

While investing a rental property is not as easy as some make it out to be, the truth is, it can help fund your golden years so you can enjoy retirement without a worry in the world.

That’s why today we’re going to explore the secrets behind becoming a profitable investment property owner. This way, you don’t have to worry about becoming a scary retirement statistic yourself.

 

The Secrets to Becoming a Successful Investment Property Owner

1. Crunch the Numbers

Believe it or not, one of the best ways to become a successful investment property owner is to crunch the numbers before you buy a property.

To start, narrow down the areas you like most. Then, determine how many vacancies there are in the general area and what types of properties are being leased. Next, find out the average rent rate for properties like the one you think you’d like to invest in.

Learn About Your Finances Before Purchasing a Rental Property in Roseville, CA

Once you know about how much rent you’ll be able to collect, estimate your expenses:

  • Mortgage
  • Property and city taxes
  • Insurance premiums
  • HOA fees
  • Maintenance and repair costs
  • Vacancy rate ( 8% of the rent)
  • Property management fees

Don’t forget to include any other income you’ll be expecting during retirement, such as social security or a 401K withdrawal.

Crunching these numbers will give you an estimate on how much cash flow you’ll actually have if you buy an investment property. If everything comes out in the green, you’re well on your way to success.

 

2. Treat Your Rental Property Like a Business

Running a business is tough. And so is managing a rental property.

If you want to make a profit and fund your retirement with your investment property, you’re going to have to approach your rental property like a business.

Take a look at some of the things all successful business people do:

  • Stay up to date in their industry. You don’t have to be a real estate agent to be a successful landlord. But you do have to be knowledgeable about the housing market. Make an effort to research the area you plan to invest in, so you know what it has to offer tenants looking to rent. Don’t look to buy the best property in a run-down area. Instead, do the opposite and look for a property that needs a little TLC (and has a great price tag) in an up-and-coming area so you have room to grow.
  • Learn to be tough, but fair. You’re going to have to be tough as a landlord. After all, there are going to be tenants that will pay their rent late or break the rules. If you want to be successful, you’ll need to stick to the rules and consequences (such as evicting a tenant), no matter what they say. If not, you risk being taken advantage of and losing money.
  • Keep your emotions at bay, but don’t be cold. When you run a business there is little room for emotion. Emotions get in the way of good decisions and cause people to make poor decisions instead. That said, you don’t want to be so unemotional that your tenants don’t like interacting with you. This will cause them to want to leave as soon as their lease is up, which is not ideal for anyone.

When you decide to invest in real estate to fund your retirement, remember to take a proactive and business-like approach to the entire process. Trust us, you’ll be thankful you did once you’re established and generating a positive cash flow.

 

3. Create a System

There’s a lot that goes into self-managing a rental property. If you’re not organized from the very beginning, you could end up losing important documents or missing essential steps.

Here are some surefire ways to get your system in place from the beginning, so you can handle everything with ease:

  • Keep meticulous records about your rental property, the people you screen, and the tenants you place in your property
  • Invest in a bookkeeping software to keep track of important paperwork and make sure it’s secure
  • Never forget to pay your insurance premiums
  • Keep copies of each lease agreement and all rent payments
  • Track maintenance and repair costs, so you always know the status of your finances
  • Schedule routine property inspections to check on your tenants and handle routine maintenance

Of course, this is just a glimpse into some of the things you’ll need to do as a rental property owner. But for someone that’s just getting into real estate investing, this is a great starting point.

 

4. Learn About Being a Landlord

As a landlord, you’ll be responsible for many things. And while it’s impossible to name them all now, we can provide you a brief look at some of the most important ones:

  • Advertising your rental as available
  • Screening every single prospective tenant
  • Drafting legally compliant lease agreements that both parties sign before move-in
  • Handling all maintenance and repairs quickly
  • Avoiding discrimination (follow the Fair Housing Laws)
  • Creating move-in and move out inspection checklists
  • Collecting a security deposit
  • Considering online rent payments
  • Performing routine property inspections
  • Adding lease provisions to address things like alterations, pets, and smoking
  • Setting a reasonable rent rate that will generate profit but make tenants happy
  • Outlining the rent rate, grace period, and consequences for late or non-payment
  • Requiring renter’s insurance

Roseville Property Management Professionals Helping Landlords Tackle Their Biggest Tasks

Sounds like a lot, right?

Well, it is. And the truth is, if you’re investing in real estate to fund your retirement, the last thing you probably want to do is spend all your time managing your rental property.

That’s why our last tip for becoming a profitable investment property owner is to consider hiring property managers in Roseville.

With the right property management company by your side, you won’t have to deal with the day-to-day operations of managing your rental property. Yet, you’ll still reap the financial rewards of your investment and be able to fund your retirement just as you hoped.

 

Are You Interested in Having Us Manage an Income Property for You?

At Tiner Property Management, we know how much work goes into self-managing an investment property. We also know how much there is to gain from a profitable rental property with the right tenants in it.

If you want to get into real estate investing to help fund your retirement, but aren’t wanting to deal with the hassles that comes with owning a rental property, get in touch with us today. Not only can we help you buy the perfect rental property, we can help you manage it too, so you don’t have to.

With most properties leasing within 10 days or less, you can start enjoying your golden years in no time. And if you’re a few years off retirement age, that just means more time to generate a lot of profit so when the time comes to say goodbye to the workforce, you’re ready.

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