Determine Costs Upfront

When I look at a home, whether it is a home I own all ready or a house I am looking to buy, it is vital as a business man that I get as close to an accurate estimate on cost for remodeling as possible. Not all homes I buy need immediate attention and are often ready to rent out as soon as I close. This is my attempt to explain how I make money renting property, such as homes and duplexes.

I really feel that curb appeal has the best chance at getting a renter into a new rental property I may buy. So I always make sure that the lawn is presentable and that the sidewalks and driveway are pressure washed and clean. I may also take the extra time to pressure wash the house itself and touch up any paint that may be chipping and replace any siding that may be rotten, chipped or broken.

I usually buy older homes that were built in the 40’s 50’s and 60’s. These homes are usually covered with either brick, stone, or cedar shingles. In most cases I can use some kind of hardiplank material to replace the broken or damaged pieces. The siding or exterior covering is very important in helping maintain a homes value over the coming years. Before replacing any siding I will always have an estimate drawn up that will give me a good idea of what the siding cost are going to be before anything is physically done. Moving along to other aspects of the exterior, is the roof.

Roofing is extremely vital and probably the most important part of a home, as it protects everything inside. A typical shingle roof will last about 15 to 20 years. If your roof is showing any signs that it needs to be replaced, replace it. Do not wait! Living in areas where tornadoes, earthquakes or hurricanes occur often, a good roof is extremely important.

Always have a home inspected. If possible use an inspector that you either know and trust or that comes highly recommended. Have every aspect of a potential home or rental be inspected, inside and out. This will include structural inspection along with plumbing and electrical.

Never buy the worst house or the nicest house on the street. If you buy the worst house, your taxes will still be high, and if you buy the nicest house, you will never be able to sell it for what its worth.

Does your potential rental have a garage? A garage is a big bonus for a potential renter and can make a person lean towards renting your property over someone elses. Washer and dryer hookups are a bonus as well. If your rental does not have the arrangements for a washer and dryer, can you find the space to make it happen? This little commodity will allow you to add at least an extra 20-25 dollars per month onto your rental fees.

Furnished or unfurnished? This is a big question you will face when becoming a land lord. You must evaluate your rental situation and the houses location, size, rental fees and renters. I have rented both furnished and unfurnished homes. True furnished homes bring in more money, but the stress factor goes up in the process. By furnished, I do not mean everything. Furnished in most cases simply means, refrigerator and stove. I have had renters leave in the middle of their lease and take the fridge and stove with them.

These are some of the simple basics of owning a rental property. Overall renting is low stress, but can become a nightmare when things go wrong or you have a horrible renter. Feel each applicant out and never be afraid to run a background check on even the most seemingly nicest people, they are the ones you usually have to watch out for.

Hope this article helps you make better rental property decisions in the future and allows you to become a successful land lord and property owner.