When you buy your first rental real estate, you are getting into something that’s completely new and foreign to you. Below are four tips that you can use when you are purchasing your first rental property.
- Know the Tenants You’ll Inherit – If you’re purchasing an occupied property, ensure you have tenants who are trustworthy living there. Talk with the previous owner for their credit checks, rental applications and background checks, along with their payment history.
- Screen Tenants – Make sure that you’re screening your tenants and check their backgrounds, tenant/landlord records and credit scores. If their credit is bad or they’ve previously been in court with their landlord, think twice about renting to them. This can help you with saving stress and time in the future.
- Buy in an Area Close to Apartment Buildings – It’s a good idea to buy your rental property in an area where there are many apartment buildings. Many people who are currently renting an apartment will often be looking for other options in the future. This will give you a wide variety of prospective tenants.
- Have Your Property Inspected – Before you commit to purchasing, have the property professionally inspected. This will let you know if there are any structural problems or problems with radon which can cause problems in the future.
These are four tips that you should remember when you’re getting into rental real estate. They are a good start to ensuring you are investing wisely and that you are getting the right tenants for you.