The housing market is becoming tougher for first-time buyers, and prices are edging upwards. That means more people are turning to rental properties as a more practical way to secure a home.
If you are a new real estate investor with your hands on a rental, you probably know this already. But don't open the champagne just yet. There is work to do. Here are our top property investment tips for your Chester County rental.
Research the Real Estate Market in Chester County, PA
You may feel your research efforts are over the moment you buy your property, but with a rental, you'll need to do some extra legwork.
First, you should establish the right rental rate for your property. That means looking at the neighborhood, demand, and broader economic factors.
You'll also want to learn more about the demographics of your target tenants and the features and qualities they want in a rental property. That will help you market it.
Maintenance and Upgrade Work
Once you have the keys to your new property, it's time to prepare it for the market. Tenants want properties in excellent condition, which might mean investing in a few upgrades.
If your budget is limited, focus on cosmetic changes. That might include replacing old flooring and repainting tired-looking walls. If you have a bigger budget, revamp areas like kitchens and bathrooms.
Adding a patio to your yard (if you have one) could also create an outdoor living space.
Market Your Property
Once your property is ready for tenants, it's time to market it. That means more than adding an online listing.
You need to be proactive. Invest in professional photography and consider getting a virtual tour, too. Create a social media presence showcasing your property's internals, which could attract potential tenants.
When writing your listing, discuss the neighborhood and the most popular nearby amenities.
Conduct Tenant Screening
Once a potential tenant approaches you with a property application, there is one final step before you can hand over your keys.
You'll need to conduct a tenant screening. This step is vital because it ensures you have someone trustworthy to look after your property and pay their rent on time.
Run comprehensive checks. That means running a search to see whether the tenant has a criminal background. You should also request a character reference from their previous landlord.
Finally, check financial information, including their credit score, and obtain evidence of income and employment.
Get to Know Local Laws
Understanding the law is a key part of property management. You'll need to familiarize yourself with tenant rights in Pennsylvania and know basic laws on zoning and building regulations.
You'll also need to have processes in place to stay compliant. For example, you'll need to schedule inspections to ensure the property is safe and that all features, such as heating and plumbing, are in good working order.
Getting Started as a Real Estate Investor
Owning your first rental property is exciting for any real estate investor. But now the hard work starts. Real estate success is about securing and keeping a good tenant there for the long run.
Key PA Property Management provides a friendly, efficient service delivered by a local team. View our services page to learn more about our rental property management in Chester County.
