4 Steps to Start Investing in Rental Property

Planning to invest in a rental property but don’t know where to start? As dealers in Edmonton property rentals, we’ve come across several people who face a similar situation when starting out in the rental business. You can rent several types of real estate properties. Right from single-family homes and apartments to spaces for offices and shopping centers can be rented. A real estate investment strategy highly depends on your goals, preferences, budget and the type of property you wish to rent. Considering these factors will help you buy your first property.

The Type of Property and Location

Let’s say you want to deal in rental homes for families and individuals. Single-family homes, apartments, townhouses, etc. are all different types of properties you can deal in. Additionally, you can start with a personal property, where you live and then rent, or rent it from day one.

When shortlisting properties it is important to take into account the location. A family with kids may want a home within a short distance of a school but a working couple or a group of teenagers won’t prefer such a location. Plus, some people may like a quiet locale while others want a busy neighborhood. Also, consider safety aspects. Typically, great neighborhoods, schools, small houses, quiet locations are all easy to rent.

Repairs and Maintenance

Many landlords make the mistake of overlooking the repairs and maintenance that come with a rental property. Depending on the type of property you buy, there will be certain costs involved in fixing and upgrading it. An old property will require you to incur renovation costs. Even a property in a good condition may need upgrading to modern amenities. Plus, as a landlord, you will be required to incur certain repairs and maintenance costs even when tenants reside. Whether you plan to finance a home yourself or mortgage it, accounting for these expenses is vital.

Property Management

Are you ready to wake up to calls from tenants late at night? Are you ok with managing the hassles of managing a property – repairs, replacements, renovations, etc.? Or, would you prefer someone else handling it. Not everyone may have the aptitude to manage a property. If you do not want to take up the day to day management, then hiring a property management service will be worth the investment. When thinking about this factor, also consider the distance of the property from where you reside. Self-management is easier with nearby properties.

Financial Goals

Not every area has a booming real estate market. While some areas may see a large amount of property value appreciation, others might not see it at all. Your end financial goals are a vital consideration when buying a rental property. Do you want the property rates to boom to gain great returns when you plan to sell it or are you happy with the basic rental income? Answer this question to find an appropriate property.

Considering these aspects will ensure you meet your investment goals. Investment in a rental property does require a cautious approach, but some effort on your part can lead you to great returns.