Investing in a home is a great way to build passive income but earning from your investment will take a little groundwork to become a well-oiled machine. This is your beginner’s guide to owning an investment property so you can set up that foundation properly to avoid future headaches.
Make sure it’s livable
It’s important to start with your home inspection before you start making plans. Use the inspection report to prioritize the maintenance issues.
Before a tenant moves in, make sure the home is livable. Handle the important items that affect the livability of the property, either now or in the near future. If the inspector noticed a leak in the roof or holes that could lead to infestation, take care of those first. Other maintenance issues to prioritize are the fuel and the hot water source.
If your city has inspection and registration requirements, be sure to cross check those inspection checklists with your current property. If the property wouldn’t pass now, make sure it will pass by the time the city sees it.
Upgrade the space
Once your property is in livable condition, it’s time to upgrade. If you have any left-over budget after the necessities are handled, consider adding a bedroom or a bathroom where you can find the space. These rooms heavily impact the rental price, and the more you have the higher the price. If there’s no space for another bed or bath, think about finishing the basement or upgrading some of the appliances to make the property more attractive to potential tenants.
Use similar properties in your neighborhood as your inspiration. These units are your competition, think about what you can add, or even take away, that would help you compete. Ask yourself what about your home is unique and in what ways does that affect your rentability? If every unit in your area has hardwoods, how can you make your carpeted home appealing? Maybe new carpet? Or is switching to hardwoods, or vinyl laminate that looks like wood, worth it?
Market it to future tenants
You need two things in your listing: 1) Great Photos 2) An Amazing Description
After you’ve perfected the property, it’s time to tell potential tenants that it’s available. Creating the listing is essential in drawing eyes on the unit so you can show it to as many people as possible.
Renters looking to move are quick to make their first impression of a property with thumbnail photos on a map. So, take lots of great, bright, photos of the entire place to showcase the amenities and show potential tenants what it looks like, then choose the best photo to be the first in the lineup. Remember to get the lighting is just right to show every corner of the listing. Dark photos scare tenants away, making them think the unit is dingy and dirty. Light and bright photos show a clean home that’s move-in ready. They can imagine themselves living there a lot easier than in dark and cramped looking units.
Next, they’ll read the description. This is again where other listings in your area can help you.
Read other listings to structure your description and to draw inspiration on what tenants might think is important. Find the selling points and emphasize those above the unique features, especially if those unique features are obvious in the photos.
This home is like new! 310 Widgeon Lane in Longmont has a beautiful yard complete with a patio offers tons of shade trees and a garden area. The interior boasts new carpet, paint, a new dishwasher and stove. For motorists – Garage offers 220 V. Need more room? There is a full basement, unfinished waiting for your own personal touches! Contact Stephanie Woodard at (970) 215-2676 for your private showing for more information or click the link below for more details.
This beautiful home at 833 Allen Drive in Longmont offers 5 bedrooms, and 4 bathrooms with an additional room to make into a non conforming bedroom or office. Enjoy the large backyard and beautiful landscaping, brand new hard wood flooring and carpet as well as new paint and blinds. The exterior offers an expanded deck, walkout basement, views of the foothills, and fruit trees. This lush yard has been cared for and ready for a new homeowner to enjoy! Contact Stephanie Woodard for your private showing at (970) 215-2676 for more information or click the link below for more details.
This 3 bedroom, 3 bath townhome at 1925 Waters Edge St Unit B in Fort Collins backs to Spring Canyon, located near CSU and Rolland Moore Park. This unit has new carpet, new paint, updated windows. Enjoy the private patio and the open green space around this unit. This one won’t last long! Contact Stephanie Woodard for your private showing at (970) 215-2676 for more information or click the link below for more details.
Come see this well maintained condo at 1602 Edora Road! This condo is close to schools, shopping, and I-25. It offers new carpet, new windows, a newly refinished bathroom, and fresh paint throughout the entire home, even the garage! Has a fenced back yard. This condo sits on a crawl space shared with the two other units. Call the listing agent for a tour! Contact Stephanie Woodard for more information or click below to view the photos and details, including price.