Buying a rental property for the first time can be exciting and rewarding. It can also be confusing and complex. If you’re not already working with experts, make sure you surround yourself with some professional partners who can help you get off to a successful start. You’re investing in real estate to make money, and mistakes can be costly.
When you’re buying a
rental property in Sacramento or the surrounding area, you’ll have to get your financial ducks in a row and schedule inspections. You’ll need to buy the proper insurance and get your property ready for the rental market.
Once all of those preliminary details are taken care of and you’ve closed on the deal, you’re officially a landlord.
Three essential things can help you move forward successfully and profitably.
Place the Right Tenants
If you’ve never rented out a property before, you probably have little experience with tenants. It’s important to understand that the residents you place will make or break your rental experience. If you allow a bad tenant to rent your home, you’ll find yourself spending more time and money than you want to
collecting rent, enforcing the lease agreement, and protecting your investment. A great tenant, however, will pay on time, communicate well, and help you take care of your home.
Find an application that’s compliant with all of California’s laws as well as federal fair housing requirements. You have to screen every application consistently, and you need to be protective of your applicants’ data and financial information. When you’re screening, check these important things:
- Nationwide eviction check
- Employment and income verification
- Credit check
- Rental history check
Many investors and landlords neglect to talk to former landlords, but this is important. You can ask if rent was paid on time, if there was any property damage left behind, and if that landlord would rent to the tenant again.
Prepare to Maintain your Rental Home
Prepare for maintenance. You’ll want a maintenance plan in place for emergency and routine repairs as well as preventative maintenance. Emergencies will require an immediate response. When a tenant calls because there’s no water or a flood or a fire, you have to have relationships in place with vendors already. Responding to routine issues with the same care is also important. It will protect the condition of your investment and serve your tenant relationship.
Preventative maintenance also protects the condition of your home and allows its value to increase reliably. Don’t put off maintenance work, and always hire licensed and insured vendors and contractors.
Work with a Professional Sacramento Property Management Company
