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Property investment, with a view to making a profit through rental income and equity growth, is becoming accessible to people with even relatively modest finances. In the current rental market, depending on the location of your investment property, there’s a lot of money to be made for those with prudency and realistic expectations. The city of Rochester, NY, is a great example of a place that’s very attractive to anyone looking to become a landlord. Due to the burgeoning infrastructure, excellent job opportunities, and above average standard of living, it’s become somewhat of a benchmark for savvy investors. But no matter where you choose to purchase a house, apartment, or even commercial property to put on the rental market, there are some very important things to consider before handing over your hard-won cash. Your Second Investment Should be in Property Management Even seasoned investors see the wisdom of enlisting the services of professional property management. Few people outside the industry have the time, skills or knowledge to do a good job in a role that covers a diverse range of responsibilities. Having a third party manage your investment takes away much of the stress involved in finding and vetting tenants, collecting rent, keeping up with maintenance, dealing with emergencies, staying compliant with the laws and bylaws of the rental market, and the myriad other things required to make an investment property profitable. Yes, you have to pay a fee for their services, but on balance it is a very wise – if not essential – investment. You Have to Spend Money to Make Money Too many landlords think they can just buy a property, install a tenant, then just “set and forget” – or in other words, sit back and rake in the rent. It couldn’t be further from the truth, and the adage of spending money to make money is purpose built for landlords! If you want your house or apartment to be tenanted consistently, with people who enjoy living there, respect it, and treat it like their own, you’ll need to make sure it is in tip-top shape. This means spending on regular maintenance (both internally and externally), upgrading appliances, keeping gardens neat and tidy, and ensuring it remains a pleasant, safe and functional place to live. Your management company will help set a budget for maintenance, including a contingency for emergencies, and it’s also worthwhile considering making regular improvements, renovations and updates in home technology and security. Insurance is Non-negotiable Speaking of spending money, nobody enjoys paying out for insurance but it’s a necessary evil for landlords. Not only do you need a policy that covers the house or apartment itself against wilful or unintended damage, natural disasters, water damage, fixtures and fittings, and many other things, but you also need cover for non-payment of rent. If a tenant defaults on their rent, you’ll still have all your costs to pay for, and that loss of income can be disastrous financially. Your property management company will be able to advise you what basic insurances you need, but only an insurance professional can set you up with exactly the right policy or policies. Don’t leave insurance to chance. There are certainly more than just three things you’ll need to know to be a successful landlord, but the ones above are some of the most important. The best advice you can follow as a new investor is to sign on with a reputable property management company even before you make a purchase. They can help you choose the ideal location to buy a house or apartment (based on your personal financial situation and long-term goals), then be with you every step of the way. Author Plate Danny Torres is from Torres Turn Key, a property management company in Rochester NY with more than ten years’ experience providing a holistic service for both domestic and international investors. When it comes to Rochester property management investors can rest assured they are in good hands. The city is one of the most exciting places to invest in both commercial and residential properties and the company brings together a host of experience and specialist knowledge to build long-term relationships and create maximum value and benefit for their customers.
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