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Make Your Investment Property Appealing and Watch the Income Roll In
(Guest Blog by Grant Winrich)
Thinking about getting into real estate? You’re probably already aware that a rental property is a great way to invest your money. Whether you go with a vacation rental or something long-term, it provides passive income while it increases in value over time.
The key to making the most of a rental property is to get the highest dollar in monthly rent and avoiding vacancies. And of course, a quicker way to make money is to flip properties, HGTV-style.
Regardless of what direction you go, making your investment worthwhile means making your property as desirable and in demand as possible.
Today, real estate pro Reid Kaplan shares some tips and resources to help you get started.
Catch Eyes with Curb Appeal
You can’t show off the inside of your home if prospective renters drive past because the outside looks unappealing. Start with a fresh coat of paint. It should be neutral while still being in keeping with the environment and location. Plants provide color and beauty and don’t have to be expensive. Just be sure and consult with your local nursery to choose ones that are easy to grow and maintain.
Amenities
You might want to consider installing amenities that can appeal to renters. Howards.com notes that appliances with the Energy Star symbol can mean savings of up to 50% for your renters while also appealing to their sense of environmental consciousness.
A privacy fence is one amenity that can give you one of the biggest returns on your investment while offering prospective renters a feeling of security and privacy. If you’re comfortable with allowing small pets, then a fence can really clinch the deal.
A balcony or patio or even a gazebo can make your home feel like a place couples can see themselves. Add a barbecue and some patio furniture and it will really feel like a welcoming home. If it’s a vacation home, then outdoor facilities will be expected by anyone looking to rent.
Security systems are not only good for keeping your investment safe, but they’re also appealing to prospective renters. Whatever system you choose, do research ahead of time to determine what will work best for the home you have. Luckily, you can refer to smart home technology websites for troubleshooting any issues that may arise with your smart home security system and other devices.
The Airbnb Option
When you want to learn how to start an Airbnb LLC, it requires a series of steps to establish your business as a legal entity and ensure compliance with local regulations. Here’s a general guide to help you get started:
Research and Planning:
- Begin by thoroughly researching your local regulations and zoning laws. Some areas have restrictions or require permits for short-term rentals like those on Airbnb.
- Develop a solid business plan outlining your goals, target audience, pricing strategy, and marketing plan.
- Choose a Name:
- Select a unique and appropriate name for your Airbnb business. Ensure the name is not already in use and that it complies with your state’s naming regulations.
- Register Your LLC:
- Choose a legal structure for your business, which is typically an LLC (Limited Liability Company) due to the liability protection it offers. Register your LLC with your state’s Secretary of State office. This usually involves filing articles of organization and paying the required fees.
- Obtain an EIN:
- Apply for an Employer Identification Number (EIN) from the IRS. This unique identifier is necessary for tax purposes and may be required when setting up bank accounts and filing taxes.
- Draft an Operating Agreement:
- Create an operating agreement for your LLC. While not always required by law, it’s essential for outlining the management structure, responsibilities of members, and how the business will be run. It can also help protect your limited liability status.
Renting an Apartment
You may decide to rent an apartment in a new area while you rent out your past residence. When selecting an apartment to rent, like one of the 300-plus available for rent in Hollywood, several crucial factors come into play. First and foremost is your budget, as you need to ensure that monthly rent, utilities, and other expenses align with your financial situation. Location is another vital consideration, as you’ll want easy access to work, transportation, schools, and essential services.
The type of apartment, such as a studio or multiple bedrooms, should cater to your space, lifestyle and design needs. For example, high-end rentals usually include luxury choices like stainless steel appliances, outdoor kitchens with special features like range hoods, and marble countertops. Additionally, assessing the apartment’s amenities, including parking, laundry facilities, and security features, can significantly impact your comfort and convenience. It’s also wise to research the neighborhood for safety, noise levels, and overall quality of life, as these factors can greatly influence your renting experience.
Property Management
A property management company can save you time by handling all the day-to-day tasks associated with rental property, like maintenance, collecting rents, answering emergencies, and handling service people like exterminators or lawn maintenance crews. And although you’ll need to pay for these services, the amount of time you’ll save in the long term is well worth the expense.
Be sure to have everything in writing. PDFs are an excellent way to store contracts, and this online tool will help you edit a PDF for free. This makes it easy to add notes, comments, and highlights to contracts to serve as reminders when you refer to them later.
Investment property can be a great way to make money, provided you also invest the time it takes to make it functional and appealing. The tips above can make a big difference in terms of marketing and management. Likewise, the more improvements you make to your property, the more you increase its value.
Marketing
Obviously, marketing is crucial for every business – and that’s just as true for investment property. Social media is a great place to start but that will only get you so far. It’s also a good idea to create Google web stories to help spread the word even further, allowing you to attract a bigger pool of potential renters. After all, you want the best renters you can find so the more options you have, the better!
Real estate expert Reid Kaplan is familiar with a wide range of areas and is comfortable working with all properties from small condos to multi-family buildings to luxury homes. Team up with Reid today! (310) 883-8921