Retaining the value of your rental property is something that concerns most homeowners. As an investor, you don’t want to buy a property that is going to go down in value, possibly losing you money. Luckily, there are a number of things you can do to ensure that your property not only retains its value, but increases it.
How to Retain Your Property’s Value
Choose the Right Location
As the real estate professionals always say, it’s all about location, location, location. You can buy the best house in the worst neighborhood, and your property value drops because of where it is located. There are a few things to consider when looking for an investment property.
Look at Schools in the Area
Choosing a property in a good school zone can keep your property value high, even if the surrounding areas fall. Even if people don’t yet have children, they will usually consider the local school systems, as it can have a huge impact on where you live. A good school district can mean safe neighborhoods, a plethora of retail shops and restaurants, and ease of transportation. Some excellent places to look in Memphis include Collierville, Germantown, and Bartlett.
Look Into Nearby Amenities
Look at the amenities near the property you are looking at possibly investing in. Some things to look for might include nearby parks, retail shops, a good grocery store, and fitness options. If a neighborhood has an HOA, that could mean that the residents of the property could possibly have access to perks such as a clubhouse, pool, and more.
Update the Property Before Renting It Out
Upgrading your investment property is one of the biggest things you can do to help the property retain its value. Not only will it make your property look better and therefore rent faster, it can lead to renters paying more in monthly rent because it is worth more to them. Someone is much more likely to pay more in rent for an updated house than for a house with old appliances, cheap flooring, overgrown landscaping, etc.
Don’t Cut Corners
If you are going to do something, do it right. Yes, you can cut corners and make quick fixes, but it will cost you in the long run. You will likely have more repairs and maintenance costs that if you do it right the first time.
Boost the Curb Appeal
Your curb appeal is what can draw renters in before they even see the inside of your home. Making sure that the outside looks nice can go a long way in helping your property to maintain its value. A little landscaping will help to make your property seem attractive and welcoming.
Buy a Turnkey Investment Property
Another option is to buy an already upgraded property that is ready for renters or already has renters in place. Memphis CashFlow offers a number of turnkey investment properties that are ready to go. We do all of the hard work for you. We will scout out the location, purchase the property, and do the necessary upgrades and renovations. You then come in and purchase the property.
Select the Right Renters
Finding respectful and reliable tenants can be a difficult task. There can be a lot that goes into finding quality tenants. Not only do you need to advertise your house, but you have to do your due diligence on looking into the people who apply. You will need to have an application for possible tenants to fill out, with all of the necessary information you will need to make your decision.
Perform a Background Check
It is important to perform a background check on anyone who could possibly rent your property. Especially after spending money on upgrades, you have put a lot of money into this house. You need to really look into the people you are going to trust to live in it and take care of it. Not only will a background check show a criminal history, it will show if the applicant has any previous bankruptcies or evictions. This can give you insight on if those people would be good renters or not. When selecting renters, Memphis CashFlow takes all of this into consideration and selects the best renters for the property.
Do your research on the Fair Housing Act. According to the Act, you can base your decision on things such as credit history or criminal background, but you absolutely cannot decide based on things such as race, family status, religion, age, gender, etc.
Use a Property Management Company
There is a lot that goes into finding tenants and then handling the month to month responsibilities of renting out a house. If everything involved with finding tenants and setting them up to move into your property seems to be a little more than what you want to handle, Memphis CashFlow can do it for you. From advertising the property, to finding the perfect tenant, to monthly maintenance, we can take care of everything. In fact, some of our turnkey properties will even already have tenants living there before you buy it, so you are buying a property with an already established rental income.
Contact Memphis CashFlow for Help
Memphis CashFlow can set you up for success with your next investment property. From finding the right property, to performing the necessary upgrades, to property management services- we will help you to buy a revenue-generating investment property. Search our list of properties currently available for purchase, or call us to begin expanding your investment property portfolio.