You’ve found the perfect turnkey investment property, and your cash flow is looking good, so what can you do now to help ensure a smooth rental process for you and your tenant? Here are a few of the ways you can prepare before and after the move-in date.
Investing in a Turnkey Property
One of the easiest ways to prevent a rental nightmare is to invest in a turnkey property on the front end. A turnkey property is one that has already undergone necessary renovations and upgrades. Many turnkey properties also featured new flooring, new light fixtures, and other details that can enhance appearance and improve the overall aesthetic of a home.
READ MORE: Financing a Turnkey Investment Property: 3 Rules to Follow
Investing in a turnkey property is your best bet as an investor. Not only will you be able to charge more for rent for properties that have necessary repairs and additional upgrades, but you’ll also be able to attract higher quality renters who will appreciate these details. This means you are far less likely to have to deal with renters who do not make payments on time.
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Turnkey real estate investing is also beneficial for investors in that it saves time, money, and the hassle of working through the renovation and rehab process. If you purchase an older home or one that has been sold at auction, there is really no way of knowing exactly how much time and money you will end up spending in order to make upgrades and improvements. Purchasing a turnkey investment property means you get what you pay for, because the work has already been completed. No surprise foundation or plumbing issues to worry about here.
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Communicating regularly with tenants and ensuring all effective lines of communication are open is essential to maintaining a positive relationship between a landlord and a tenant. From providing a tenant with access to your home and mobile phone as well as email, you can ensure they can contact you with any questions or concerns, within reason of course.
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One of the easiest ways for real estate investors to ensure communication remains open is to hire a property management company. From tenant screening to handling maintenance requests, a property management company can take the hassle out of the rental process.
READ MORE: 5 Things That Make a Great Property Management Company
Put Everything in Writing
If we can impart just one piece of advice to new and experienced real estate investors, it’s to ensure everything is in writing, from the rental agreement to any verbal agreements to make improvements or repairs, withhold late fees, etc. This includes any instance in which an agreement is made that can potentially cost you money in the long-run.
READ MORE: A Real Estate Investment Process to Help You Win
Another advantage of working with a property management company is having a team of experts who can help you draft a rental agreement to fit your needs. Once you’ve created your lease agreement, make sure to retain copies of each document, including all pages. You’ll want to save these documents even after a tenant has moved on, as you may need them as evidence should any legal issues arise.
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Managing tenant expectations on the front end is the easiest way to avoid a situation in which a renter is unhappy with or unaware of the rights and responsibilities of both the tenant and the landlord. It would be unreasonable, for example, for a tenant to not expect late fees on a rent payment that is 10 days late, but it is necessary to include such information in all rental agreements in order to manage those unreasonable expectations.
Ready to Begin Investing in Real Estate Property?
Are you ready to begin investing in real estate today? We can guide you through the process of locating the right location and rental property to fit your budget and preference. We’ll even take care of the rehab process, so you can avoid the hassle of dealing with renovations.