How to Attract More Renters and Profits with Investment Properties

Looking for the perfect real estate investment opportunity? Then you’ve come to the right place. Turning a property into a thriving investment takes some know-how, but with a few simple steps, you can ensure that your first—or next—real estate investment is a smart one. So before you buy a rental property, be sure to use these steps to make it more profitable. 

Buy Property in a Popular Rental Location 

Design changes can boost the appeal of your rental home, but not if it’s in an undesirable location. In the Seattle area, certain neighborhoods are more lucrative for real estate investors than others. Westlake and Mid-Wilshire have been booming in recent years, but the market can shift quickly. So your best bet is to check in with an experienced local realtor, who can help you find the perfect location for your investment property. If you prefer to do more homework on your own, you can also look up rental statistics for any given area. This is actually a wise move for any landlord at any stage in the process, since you can figure out whether a particular location will provide you with steady rental income now and in the future. 

Hire an Experienced Property Manager 

A good real estate agent can help you find the perfect investment property, but it’s up to you to make that property profitable. One easy way to net reliable tenants and manage your property efficiently is to look for a property management company that has the experience and knowledge to help your home stand out from the competition. Not only will this property manager help market your home, but they will also provide easy access to your property and rental portfolio. They will also assist with landlord tasks, like screening rental applications, collecting rental payments, and dealing with maintenance calls. Working with a property management company is one of the simplest ways to reduce your stress as a landlord and maximize your profits. 

Invest in Renovations

First impressions are everything, especially in a competitive real estate market. With many residents renting instead of buying a home, investors are flooding this market with potential homes, which means your property needs to really stand out to attract the best tenants. You can take advantage of this boom in home rentals by making home improvements that will boost your property’s curb appeal. For under $200, investment property owners can have homes pressure washed, front doors freshened, or landscaping made more drought-tolerant.

In order to really reel those tenants in, however, you will need to help the interior sparkle as well. Any investment property can benefit from freshly painted walls or refinished floors, and these updates can bring in more profits. And while you can easily paint the walls yourself, you likely will need to bring in a professional to handle the floor. You can expect to pay between $3 and $6 per square foot for this job, though that price could easily jump to $5 to $8 per square foot if you decide to use dustless methods that frequently require the use of commercial vacuum cleaners.

Protect Properties with Proper Insurance 

It takes some work to find the right investment property and get it ready to rent to potential tenants. After all of that effort, it only makes sense to take the necessary steps to protect your real estate investment. Insurance for landlords is different from typical homeowner’s insurance but equally important, so be sure to shop around until you find a policy. that’s right for your investment. Most policies protect the actual structure of your property but should also include liability coverage, in case an accident on your property causes an injury. In addition to insurance, you may also want to invest in a quality security system for your rental property, which can be beneficial in a variety of ways. Potential tenants may feel safer renting a home with a security system, and your home will also be better protected while vacant, plus you can reduce insurance rates. 

Your first step to making an investment property profitable should be to work with an experienced local real estate group. After that, you can use the tips above to maximize profits and attract more reliable renters to your home. With the right steps, your first or next investment can be simple and rewarding.