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The Salt Lake City property market is booming. The trend began during the pandemic and is showing no signs of slowing, with some of the largest jumps in property values in the country.
That is good news for landlords. However, if you are a new real estate investor, you probably have already realized that there are a lot of moving parts, and taking the right steps to get a rental ready to go is essential.
Fortunately, some basic strategies can point you in the right direction. The article below covers these. Keep reading to find out how they might apply to your property and real estate business.
Purchase Insurance
One of the first things you should do as a new real estate investor is to buy property insurance. This is a specific policy that covers the physical structure of the property against damage from natural events and vandalism.
It also provides liability protection should a tenant or contractor become injured on the property. This usually includes legal fees and potential settlements in the event of a lawsuit against you.
Financial Preparation
One of the first things someone should do after buying a rental property is to put a financial plan in place. Add your estimated income and calculate expenses for things like:
- Mortgage payments
- Property taxes
- Insurance
All these are usually fixed amounts or rates, so they should be easy to estimate. Next, allocate funds for repairs and maintenance of the property. Also, budget for property improvements, as these can help create more attractive units for prospective renters and allow you to charge more for rent.
Another "expense" includes losses when the property is not rented. While you cannot plan for these exactly, having a plan in place for what to do if it does happen can make you better financially prepared.
Draft a Lease Agreement
Before moving forward with tenant placement, outline the lease terms in a document. This should include things like
- Security deposit amount
- Rent amount
- Due dates
- Maintenance responsibilities
- Rules of the property
While you can finalize these details during the rental agreement period, having these stipulations drawn up can give you a better idea of the types of tenants that are the best fit for the space.
Hire a Property Management Company
If any of the advice above sounds too overwhelming, consider hiring experts to fill in the gaps. Professional real estate advisers and property managers can keep you pointed in the right direction.
They can market the property and screen tenants. They can help you streamline the entire lease process so that everything moves more efficiently.
Real estate professionals can also provide legal advice, real estate strategies, and rental property tips. They can give you the confidence that you are making the best decisions for your property and maximizing rental income.
Find Real Estate Investor Help Near You
Now that have some tips for first-time rental property owners, you can get started. An experienced real estate investor can further advise you on the right steps to take.
Wheeler & Associates is a local, family-owned company that has been serving Salt Lake City and the surrounding areas since 1973. We pride ourselves on offering stellar customer service combined with local real estate market and management expertise. Reach out to us for real estate investment advice.
