What's Next After Buying Your First Rental Property?

What's Next After Buying Your First Rental Property?

New Hampshire has one of the lowest rental availability rates in the United States, so if you're looking to invest, snapping up a rental property is a great choice.

When you're real estate investing, you want to be prepared for what to do with your new property once you've snapped it up.

Luckily, we have the information you need. Read on to find out what to do after purchasing your first rental property.

Figure Out Management

Decide whether you will manage your new rental property yourself or hire a property management company. If you choose to self-manage, you'll have your hands full.

Be prepared to handle tenant communication, repairs, and other day-to-day responsibilities.

Hiring a rental property management company can relieve you of these duties. However, it will come with associated costs. Weigh all the possibilities and make a decision based on your financial situation and needs.

Screen Possible Tenants

Finding reliable tenants is crucial for a successful rental property investment. Establish a thorough tenant screening process that includes background checks, credit checks, and references.

Create a tenant application form that includes essential information such as the applicant's full name, contact details, employment information, rental history, and references.

If you're working with a property management company, they can handle the screening process for you.

Get Insurance

Obtain landlord insurance to protect your investment property. Standard homeowner insurance might not adequately cover rental properties, so it's essential to have the right coverage in place.

Regularly evaluate your coverage and update it as needed. As your property's value changes or you make improvements, ensure that your insurance coverage adequately reflects these changes.

Follow the Law

Familiarize yourself with local landlord-tenant laws and regulations. Complying with legal requirements ensures you are providing a safe and fair environment for your tenants and protects you from potential legal issues.

Make a Long-Term Plan

Consider your long-term investment strategy. Will you continue acquiring more rental properties? Do you want to diversify your investments?

Or would you rather focus on paying off existing mortgages? Create a plan that suits your goals.

If you went into debt to purchase your rental property, you should prioritize paying it off. You don't want to go into more debt and end up in a hole!

As you gain experience and confidence, you might consider expanding your real estate portfolio with additional properties. You could also start exploring different types of real estate investments. Options include commercial properties and real estate investment trusts.

Keep in mind that portfolio management is important. Look into the property you own regularly and ensure that there are no issues. You don't want money falling through the cracks.

Follow Up on Your Real Estate Investing Today

There's a lot more to real estate investing than just buying property. Once you're a real estate investor, you'll need to follow the advice in this article to get the most out of your investment.

Are you looking to hire a property management company in southern New Hampshire? Contact PMI Garden State to get started today.