Buying an investment property is extremely exciting! Whether it is your first time or you have experience, buying a rental property is always an adventure. Your new investment gives you so much opportunity for residual income. If you are new to the rental business, you might be confused about what happens after purchasing your property. If you keep in mind the following six things, you should have a good experience.
It is extremely important that you know the laws regarding rental properties. We do not say this lightly. You need to take the time to research all the tenant / landlord laws. Know them and know them well. You can get into a lot of trouble if you break laws that have to do with rental properties.
When you purchase your rental home, it may need some improvements. These can be major or minor depending on the property that you buy. You do not want to make improvements on your investment when tenants are looking at the home or are moving into the home. Make sure you get these improvements done before even listing the home as available to rent. Some improvements you might want to make are new painting, new window treatments, and new lighting. For more ideas on improvements, check out Affordable Ways to Make Your Rental More Appealing, Five Ways to Improve the Value of Your Rental Property, and Spring Maintenance and Cleaning.
Make Sure You Have Money Set Aside
The unexpected does happen no matter your situation. When it comes to a rental property, expect the unexpected. Unfavorable events may include your renters leaving unexpectedly, you having to evict your renters, pandemics, maintenance emergencies that keep your renters from paying their rent, and things in the home breaking. Between upkeep and the average tenant vacancy of 21-25 days, you need to set aside money. This way you are not scrambling for cash when something unexpected happens.
Hire a Property Management Company
Owning a rental property can be very time consuming. From doing maintenance to keeping track of bills and more, owning a rental home does require a lot of work. This is where a property management company comes in. Property management companies do all the work for you that you do not want to do. They market your property, find qualified tenants, ensure you are compliant with state and local laws, make sure rent is paid on time, provide monthly and annual accounting statements and address maintenance issues. Property management companies make your life easier. Check out our blog on Why a Property Management Company is Worth Your Dollar.
Start Marketing Your Home
Unfortunately, homes do not rent themselves. You must put in the leg work to get the word out about your rental. Some basic ways you can market your home are on rental listing sites, on social media, and by word of mouth. For more in-depth information on marketing your rental property, read our blog on How to Get Your Property Noticed.
Start Looking for Tenants
Once you have completed all the above steps, it is time to start looking for qualified tenants to live in your investment property. Make sure that you have an established rental criteria and are consistent with each application you screen. Tenant / landlord laws in Oregon require you to screen completed applications on a first come first serve basis. If you hire a property management company, they will be able to do this for you.
Looking to learn all things Oregon? Check out our blog where we go over fun activities and discuss tips for Oregon investment property owners.
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