When researching ways to bring in extra income, it's important to consider the idea of owning a rental property. More than stocks and bonds, the rental market is fairly stable and generates a largely passive income that is paid out every month. Imagine what you could do with the extra steady income provided by a rental property. Now, consider ways of making that a reality:
1. Make a Smart Purchase
A rental property is a big purchase, so make sure you do the research required to find the best listing available in a growing or stable neighborhood. Ideally, you'll be able to increase the amount you charge in rent over time in order to be competitive in your chosen market, so take neighborhood growth into effect when deciding where to buy. If you're unsure how to find out that information, contacting a property management company like Reedy & Company Realtors, LLC is a great place to start.
2. Turn a House Into a Home
Owning a rental property isn't just about purchasing a home and immediately renting it out. Most likely it'll need some work done. Take the time to create a welcoming space that creates a demand. Just because you're in a highly sought-after neighborhood doesn't mean you'll find renters if your property is ugly or poorly maintained. So, create a curb appeal, spruce up the yard, slap on a fresh coat of paint. Basically, do what you need to in order to beautify your rental property.
3. Work With a Property Management Company
There are a lot of details that go into renting a property, so who better to help you than a property management company? Reedy & Company Realtors, LLC specializes in helping investors like you manage their properties in both Memphis and surrounding areas. Especially if you're a first-time investor, the assistance of a property management company can be crucial to your success in this new venture. Even if you've owned a property for a while now, a property management company can present new and exciting ways to create a space that's inviting while increasing your profits.
4. Make Sure Your Investment is Worth It
Purchasing a rental property can be an expensive endeavor. Make sure to do the math to find out what your returns will be and ensure that this venture is worth your time and money. It certainly can be, but if you're purchasing a property in a declining neighborhood or if the market is unstable, you may want to rethink your options. Again, this is great information that can be provided by a property management company, and working with an experienced team may be your best option to ensure you're making the best investment possible.
5. Max Out Your Earnings
One way to ensure that you're making the most money possible from your investment property is to include "add-ons" that can be purchased in addition to the space itself. This can include things like parking spots, storage space, and any sort of equipment that renters may find useful. The addition of even $100 a month can increase your revenue from the property $1,200 a year.
When you work with a property management company like Reedy & Company Realtors, LLC, you'll find that the effort and time spent on setting up and managing your rental property is significantly decreased. Contact us today to find out more about how we can help you purchase a property or manage an existing rental you already own. You'll find that the investment of a rental property is well worth the time, money, and hard work that is put into it, and you'll soon see your profits start to maximize!