Written by: Katie Conroy
Looking to flush out your finances? You may be thinking about investing in a rental property. Real estate investments can be a lucrative and even passive way to earn extra income — that is, if you know which steps to take and what sort of properties and features to invest in to attract more tenants.
Need help figuring it all out? CH Construction has you covered with the remodeling services to ensure that your first real estate investment provides the most ROI. Here’s what to consider:
Wondering if you should invest now or wait? With a booming rental market and forecasts for continued growth, you may want to get in the game ASAP. Use this link to drill down into stats for your area to get more targeted data and information.
In terms of financing, interest rates are also expected to remain at historic lows for the next couple of years. Keep in mind that this could change as the economy picks back up, so it may be best to jump on investment opportunities now, rather than risk higher interest rates later.
Even with public gatherings picking up steam, folks are still looking for ways to enjoy the outdoors at home. Know what sort of outdoor spaces to look for or add to a property before listing it. For instance, a nice and clean deck or multi-season room could set your rental home apart from the competition and attract tenants.
Safety and Security
When people look for a rental, some of the first things they look for are safety and security. Adequate fencing can boost both, as well as spruce up the outdoors. The median price for fence installation is $4,500, depending on size, materials, and location. Be clear about expectations and use online resources to vet contractors before hiring them. Also, confirm pricing.
Along with a fence for security and privacy, you should also invest in better lighting. Well-lit outdoor spaces can help deter crime and help renters feel more relaxed and at home, as well as boost curb appeal.
Security and functional outdoor spaces can attract more renters. However, you will also want to work on the aesthetics of your rental property. Since the safest bet for first-time investors is a single-family residence, this means taking the time to tidy up the front and landscaping.
Having a yard and outdoor living spaces can entice renters to become more attached to your home, which means they may stick around longer. Not only will this provide a steady revenue but it will also decrease the potential costs of marketing the home to new tenants.
Renters will expect that appliances are working and up to modern standards. If you’re concerned about the cost of replacing outdated appliances, you may be happy to hear that this is a tax-deductible expense for landlords.
Taxes can be confusing for new landlords, so you may want to consult an experienced accountant. In addition to helping you with appliance deductions, an accountant can also make sure you don’t miss out on other credits, like property management fees, etc.
Yes, property management fees are tax-deductible. This is important to note because, while you can self-manage, doing so requires time, energy, and resources. It can be a full-time job. So if you already have a day job, consider hiring a property manager. Not only will doing so simplify the routine management and upkeep of your home, but it will also make finding renters easier.
An investment property can be a boon for your finances. You need to play your cards right, but it doesn’t have to feel like a game of chance. Keep this guide handy in mind as you make your first moves. Reach out to CH Construction for professional property improvements that are also budget-friendly. Get a quote here.
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