Renting is on the rise in the United States. There are more than 44 million renting households in the country. This represents a 10% increase over the past decade.
As a landlord, there is an opportunity to earn a passive income. There is also a significant risk if you do not know the ins and outs of being a successful landlord.
Read on to learn essential tips for first-time landlords. Explore topics like the importance of rental analysis and how to attract tenants.
Perform a Rental Analysis
Performing a rental analysis is one of the first steps that a successful landlord takes. This analysis gives them invaluable information on projected revenue and expenses.
The analysis looks at comparable rental properties to determine a monthly rent amount. It also covers financial topics like return on investment and potential expenses.
To maximize your profit, you need to bring in high-quality tenants. The best way to achieve this is through a robust tenant screening process.
You are looking for tenants with a steady job history and income. Also, you want tenants with a good credit score who reliably pay their bills on time. Tenants with a violent criminal history should be avoided.
Hire a Property Management Company
Managing a rental property in Indianapolis is a full-time job and is not easy. You are legally bound to provide your tenants with a safe and habitable dwelling. This includes a functioning heating system, clean running water, and operational appliances.
If one of these items fails, Indiana state law requires you to promptly fix it. Without professionals in your corner, this means you are making late-night service calls to fix the toilet or hot water heater.
The best landlords rely on property management companies to do the bulk of the work. This way, they can expand their portfolio by acquiring more rental properties. With multiple properties comes a steady stream of passive income that allows you to keep reinvesting.
Property management companies also handle difficult situations like eviction. They have experience with Indiana State eviction law and can professionally handle a delicate situation.
Best Strategies for Attracting Tenants
It is unlikely that high-quality tenants will fall into your lap. Instead, you need to attract them with an aggressive marketing strategy.
Traditional advertising campaigns, like newspapers, are not as effective as they once were. Social media and the internet are the best ways to spread the word.
Here, you can publish the details of your property. Also, your rental property description should include high-quality photographs.
Property management companies have built robust connection networks. They can handle your marketing campaign and get the word out to the maximum number of people.
Your Guide to Becoming a Landlord
You are now ready to become a landlord. Seeking out help is advisable and will not affect your bottom line in the long run. In fact, hiring a property management company can take your rental game to the next level.
PMI Meridian Management has been helping new landlords in Indianapolis for decades. Contact us today at PMI Meridian Management for a free rental analysis and consultation in the Indianapolis area.