If you’ve been looking for opportunities to build passive income, you may have considered investing in real estate. As people are starting to wait longer before buying their first home, landlords are cashing in and building strong real estate portfolios.
Despite data that supports real estate investing as a way to create wealth, you may still be wondering if it’s a safe risk to become a landlord at a time when Millennials continue to struggle with student debts, and young professionals are spending money on more superficial purchases. But the answer is still yes. Real estate is tried and true. If you buy right, in the right location, investing in real estate is still a lucrative venture.
Making money from real estate doesn’t start the moment you acquire the property. Managing your rental property is a business in itself. It doesn’t necessarily require your full-time investment, but it’s definitely an activity that is time-consuming. To gain a better understanding of the responsibilities that come with property management, it might be a good idea to take a course, talk to someone experienced in the industry or enter a property management franchise to get the training you need.
After you’ve bought a property it’s time to find a tenant. You’ll need to know where people are looking to find homes to rent. The number one answer is online! Google is a prospective tenant’s (and landlords) best friend. There are a variety of options available to help you extend your digital presence. Look into websites like rent.com, trulia.com, and zillow.com to post and advertise your properties online. And if you’re looking for free marketing utilize Facebook and Instagram to market your properties.
Being a slum-lord is no longer tolerated… no matter how great the location is. And sometimes you have to go the extra mile to attract good renters to your property. Prospective tenants are starting to look for specific features. For example, they may want suburban homes that have square footage and larger yards or city-living condos equipped with hardwood floors and modern conveniences like digital thermostats, newer appliances, and high-speed wireless Internet. In other words, your tenants are likely to want more from their property. While you don’t want to break the bank… be sure that your homes stand out from the competition and in turn your earn more in monthly rent too.