Occupying your investment property in a timely and profitable manner

To maintain a positive ROI on any investment purchase you have to have tenants, right?

RIGHT.

However, I often see many investors going about this process the wrong way! I am constantly hearing the stress and aggravation of landlords whom can't get their property rented in a timely OR profitable manner. Stress kicks in, Buyers remorse is next, and the drinking ensues (joking).

What can we do to be sure that our new investment becomes occupied at a desirable rate with just as desirable tenants?

Become your own rental agent!!

As a Realtor I am sure i will get burned for stating this, but the MLS is NOT the way to rent your property in these times! To do so requires the added expense of 10% of your gross lease net. Doesn't it make sense to first of all save that amount, and secondly to pass on those savings? If you are going to give up that 10% to an agent, give it straight to your tenant!! No, I don't mean hand them a wad of cash for signing a lease, just require less of a deposit for them to move in - isn't that a motivator to choose your property over your competitions?

Do your research before you buy!!

If this doesn't sound like the most logical advice I can give...... But it's true and often forgotten. DO NOT and I have to repeat - DO NOT buy an investment rental property without figuring out what your lowest rental income will be. Forget the greed and how much you could charge, how much can you get? Do your work and find out first of all what current tenants in comparable units are paying, and secondly what comparable units are asking. Will the lowest amount you can expect still make your ROI high? If not, move on.

Don't get bogged down with Credit Apps & Referrals

Everyone deserves a second chance right? Just because a prospect has bad credit or can't provide adequate references does not make him/her a bad tenant. Yes, the percentage of default is higher, but I've also seen people with 760 credit scores go into foreclousre, we all have by now. This may sound lacksidasical or imprudent, but GO WITH YOUR GUT. You need to judge your prospective tenants by yourself, what feeling do you get from them? If it feels right, go for it. There are no guarentees in life, we sometimes have to take a chance on the underdog, when the odds are against us however they can pay off in spades! (wanna go to the track?)

Keep your tenants happy

Again, seems obvious but this is also often forgotten. A happy tenant is a paying tenant as well as a courteous tenant. Remember the days of highschool parties? If you were friends with the homeowner didn't you look after the house during the ruckus? If however you were in a "strangers" home, spilled beer here, dent in a wall there, whatever.... not my house. Tenants have the same mindset, if they like you and understand that you repect them they will treat your home as it is theirs and the payoff for this is priceless!!


For more tips, advice or ideas on occupying a rental property to the best or your ability visit us at:

SFLA Investments


or write us direct at info@sflainvestments.com


To your wealth

- Rick