New investors often have the enthusiasm that’s required when it comes to buying and renting out properties, but the initial first steps can be confusing. Where do you start? How do you find a tenant? What makes a good investment property?
We have some advice to new investors who are buying their first property and want to know how to succeed. The best thing we can advise is to surround yourself with experts. You’ll need a good real estate agent, property manager, legal counsel, accounting professional, and mortgage broker.
With the right team surrounding you, you’ll be off to a great start as a Lee’s Summit investor.
Identifying Investment Opportunities
Real estate in Lee’s Summit and the surrounding areas increase in value over time, so
buying a property
is a great way to increase your net worth. Owning investment properties can also help you diversify your income, and you’re looking for a home that can potentially earn you positive cash flow every month.
Rental properties are also low risk investments. If the stock market and other investments make you nervous, you’ll be happy to know that the returns on your real estate will be fairly steady. Stock values can fall or disappear but real estate is a tangible investment and it isn’t going anywhere.
Choose a property that fits your investment goals. Before you invest, make sure you understand whether you’re hoping for immediate cash flow, long term appreciation, or something else. You don’t want to buy the first thing that comes along just because it’s available. Be intentional and strategic and put together a roadmap.
Place High Quality Tenants
The tenant you place can often make or break your investment experience. If you allow a bad tenant to rent your home, you’ll find yourself spending more time and money than you want to trying to collect rent, enforce the lease, and protect your investment property. A great tenant, however, will pay on time, communicate well, and help you take care of your home.
You need an application that’s compliant with all state and federal
fair housing laws. Be careful when you’re screening; you have to screen every application consistently, and you need to be protective of your applicants’ data and financial information. When you’re screening, check these important things:
- Nationwide eviction and criminal check
- Employment and income verification
- Credit check
- Rental history check
Many investors and landlords neglect to talk to former landlords, but this is important. You can ask if rent was paid on time, if there was any property damage left behind, and if that landlord would rent to the tenant again.
Respond Promptly to Rental Property Maintenance Issues
Responding to emergency maintenance is a no-brainer. When a tenant calls because there’s a flood or a fire or a tree that’s crashed through a window, you know that you have to respond immediately with a team of vendors.
Routine maintenance should inspire the same sense of urgency. Taking care of even minor issues right away will make your tenants feel valued and important. This contributes to excellent tenant retention, which saves you money on turnovers and vacancies. Preventative maintenance also protects the condition of your home and allows its value to increase reliably. Don’t put off maintenance work, and always hire licensed and insured vendors and contractors.
Professional Lee’s Summit Property Management
If you’re a new investor wondering where to start – we can help. Turn to us first, and
contact our team at Midwest Property Resources.
Since its founding in 2011,
Midwest Property Resources has been innovating property management and leasing in eastern Jackson County, northern Cass County, Missouri as well as Johnson County, KS, serving the communities of Lee’s Summit, Blue Springs, Greenwood, Raymore, Independence, Overland Park, and others that surround them.
