Buying Rental Property

by Don Romanek

So you are considering buying rental property. Congratulations. You are now among the millions of people each year who consider buying investment real estate. But are you ready for the next step to actually buy a rental property? Before you dive in, make sure you do some research first and find out what it is really like to be a landlord. Despite what you may have heard elsewhere, there is a lot to know and it is a lot of work. But that does not mean it is not worth it. If you want to be successful, you must understand what to expect before you begin renting.
Owning rental property can be very rewarding financially and otherwise. While it is possible to sit back and collect income year after year without doing any work on your property, it is not a very realistic expectation if you want to maintain a profitable investment for years to come. Finding a home rental or apartment rental that will reap you a net profit each year is not very difficult, but maintaining a 20% return on your investment or selling the rental property in 20 years for a large profit will likely take some regular effort on your part.

Becoming a successful rental property owner requires that you do whatever it takes to rent your property, keep your tenants happy and maintain your property so it can be easily rented year after year. That means you must actively seek renters to fill your vacancies, respond to your tenants needs and take the time to make repairs that will last and even increase your property value. Anyone can pick up a roller and paint a room so it looks pretty. But not everyone can fix a leaking pipe or replace a broken windowpane. Make sure you know what you are doing, have someone that can help you or be prepared to pay for repairs.

When choosing an area where to buy a rental property, there are several things to consider including, distance from your home, supply of potential tenants, average rents you can collect and the ability of tenants in that area to pay you. There are many advantages to renting in an area such as a college community because there is always and ample supply of tenants, rental income is usually higher than most other areas, and vacancies can be limited. Also, students often have parents who will pay their rent.

Take some time to read articles on renting and becoming a landlord before you move ahead and buy a rental property. Participate in on line forums that discuss the pros and cons of buying rental property. Talk to other rental property owners to hear their thoughts on being a landlord. Be sure to ask what it is like to rent to students, how do they deal with vacancies, and what other issues they have renting in a college community. Investment real estate can be a worthwhile investment if you are well prepared to face any challenges that may come along.

Don Romanek has owned and managed rental properties in college communities for 14 years. He started www.OffCampusNetwork.com to help landlords and property managers rent their properties near college communities throughout the country. OffCampusNetwork has hundreds of rental property listings nationwide and offers many resources for rental property owners.