So You Bought an Investment Property, What’s Next?

Buying an investment property is a great first step in earning money on real estate. 

What comes next? 

We can help you navigate the process, which isn’t always easy for a first-time investor. The exact steps you take will depend on your goals as an investor and the property (or properties) you have purchased. However, this can be used as a general outline of where you need to focus your attention once the deal is closed. 

Choose an Arlington Property Manager 

Surrounding yourself with experts helps you have a successful investment experience. If you’re working with your first rental property, you’ll need some expert advice when it comes to leasing, managing, and maintaining that property. A property manager can provide support, resources, and expertise. 

If you don’t already have a management partner, finding one is what you want to do next. 

Choose an experienced management company with a great local reputation. 

This is why a property manager is so important right after you’ve invested (or even before you invest):

• You’ll know how much rent you can expect to earn on your property. 
• You’ll know what’s needed to make the property ready for the rental market.
• You can leverage a great network of vendors and contractors without screening and hiring them yourself. 
• You’ll have the expertise and knowledge you need when it comes to marketing, tenant screening, and preventative repairs. 
• You’re protected from the risk and liability that comes with renting out property. 
• You’ll have less work to manage yourself and more time to do what you love.
• You’re likely to earn more and spend less on your investment. 

Good property management is essential once you have an Arlington investment property. Everything else will move along with far more efficiency when you’re working with a great property manager. 

Create a Risk Management Plan and Protect Yourself From Liability 

You’ve just invested in an asset that’s worth a lot of money. You’ll have to protect it. 

Look for a landlord’s policy that will protect you and your rental property. You’ll need coverage for the repair and replacement costs of the physical structure. You’ll also need adequate liability coverage and loss of rent insurance. 

Once you’ve protected your property with insurance, you need to think about how to protect yourself from common legal mistakes. Educate yourself on the state, local, and federal rental laws that apply to your property. You’ll need to know: 

• State and federal fair housing laws
• Security deposit laws
• Requirements around rental increases
• Eviction laws
• Habitability standards

There’s a lot to know, and mistakes get pretty expensive. This is another great reason to work with a property manager; we stay up to date on all the laws and we keep our properties and owners in compliance.

Rental Property Pricing 

Accurate and competitive rental property pricing is important, and here’s what you need to consider.

• Know the market. Get to know what similar homes are renting for. Price according to current market conditions. 
• Consider the competition. Will your property stand out in the market or are there dozens just like it?
• Location and property condition are important. Tenants will pay more for the right neighborhood. They’ll also pay more when you offer renovations and upgrades that make the home modern and inviting.