Owning rentals in West Palm Beach?can be a profitable venture. According to one real estate forecasting firm, the average return on your investment, per year after expenses, will be around 5% to 6%. It doesn?t sound like a lot, although given what other investments are paying it is a pretty decent return. But real estate investment and property management isn?t something to jump into without research and planning and more research. Owning West?Palm Beach?rental property can be a challenge in both time and money and while you do stand to make money, there is always the possibility you won?t. By avoiding some basic pitfalls you can increase your chances of seeing a positive return on your investment.
Know the rental market statistics for the location of your potential?investment properties.
When you are looking for investment properties in West?Palm Beach?make sure you or your agent look at DOM for rentals?(days on market) for that particular area. I work with a few select investors who purchase everything from multifamily to condos.?You should also know where your largest rental pool is coming from. It?s generally?single mothers, so pay attention to the school system in the areas you are interested in.
Inadequate background and income verification checks
It seems landlords set out with great intentions of how they will check backgrounds, credit, prior landlords and income verification, but then fail to follow through. Maybe it is the small amount of services available to the public to do adequate checks, maybe potential landlords feel like they are being intrusive by making these calls. I?m not sure, but this is one area you must be diligent about and why it makes sense to use the services of a Rental Agent to find qualified tenants for your rental property.
Repairs cost in both time and money
Before you purchase an investment property be sure to have it inspected. What seemed like a good deal initially can turn into a money pit when you suddenly discover huge amounts?dry rot, severe?insect infestation, mold, faulty plumbing, etc. after the purchase and you end up spending a lot of time managing the property.
Appliance?issues is one of?the main issues between tenants and landlords.
?There is an easy way to attack this issue before it even arises by getting appliance / ac service contracts?as soon as you are ready to list your Palm Beach County property. You pay an annual fee (well worth it!); personally I suggest either Service America or ECM. When your tenant moves in, you give them the contact information, and when something breaks, you won?t be getting that dreaded phone call, it?s a win win for all!
It is usually recommended that tenants don?t make repairs. Something minor like changing a gasket in a faucet, etc., is ok, but for the majority of repairs you will want to either do it yourself or hire someone who specializes in the specific type of repair to do the work.
Renting to family and friends
This one almost goes without saying. Your best bet is don?t do it. These deals have a way of going sour and end up with destroyed relationships. If you do rent to a family member or friend be sure that everyone understands upfront that the same contract agreements apply to them as to a ?regular? tenant.
Keeping the property tenant ready
Again property management comes into play. Upkeep is important if you want to retain the value of your rental and make it appealing to prospective renters. A fresh coat of paint may be necessary when tenants move out, carpets should be replaced every 5 years or so, appliances need to be clean and maintained to assure they are in good working order. Window treatments should be cleaned or replaced regularly and screens replaced if they are torn. The more interest you show in your property the more likely your tenants are to take care of it as well.
Qualified tenants use a realtor? ? rental agent to find a rental property because they have nothing to hide?
Why take the chance of allowing someone to rent your home without knowing as much as possible about them! An eviction is time-consuming, emotionally and financially draining!? Our rental service uses an in-depth screening process so you can be assured that any prospective renter is qualified.
Protect your real estate investment, list your? Palm Beach County investment properties? with an experienced realtor? ? rental agent.
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