4 of the Best Steps You Can Take to Make Your Investment Property a Profitable One
An investment property can make for a potentially lucrative investment. This is a property that you can rent long or short term which can be a viable source of passive income. But of course, it’s not enough to buy a property and expect it to generate cash flow on its own. There are, in fact, other variables in play that you need to take care of for your investment property to yield the ROI that it promises, especially in a competitive market like Boston. Let’s break down the process.
Location, location, location.
The age-old battle cry of realtors is definitely one thing you shouldn’t ignore when you’re thinking about going into property investment—and for good reason. While it’s not the be-all and end-all of real estate success, it does contribute to it in many ways—not only in making the property compelling to tenants (and, by extension, bringing in huge returns), but also in terms of long-term appreciation.
With this in mind, it’s definitely smart to work toward picking the ideal location for your investment. This will entail looking at a number of factors, such as walkability and proximity to public transportation and establishments like stores, schools, restaurants, and more. Moreover, you should also have an eye on the big picture—that is to say, the local job market, economics, population growth, etc.
Boston is unquestionably one city that can satisfy these parameters in more ways than one. You can’t go wrong by scouring this bustling metropolis’s best neighborhoods for possible properties to invest in. Even neighboring towns are starting to attract serious investors, so there’s definitely plenty of opportunities there.
Make it stand out from other rentals.
Of course, choosing the perfect investment property in the right location is only half the battle. The real work begins as you create a rental that has all the bells and whistles that tenants look for. It also needs to stand out amid a crowd of other rentals, which can be a real challenge in competitive markets.
As a rule, a good rental property will have the four S’s—that is to say, space, style, service, and safety. This will entail the mindful use of design elements that are particularly compelling to tenants. Having the right amenities will provide you with a competitive edge, too.
Don’t leave safety up to chance.
Now, security is one thing that can be easily overlooked. However, it is definitely no less important in investment properties as tenants inevitably look toward their landlords to keep the property safe. Fundamentally, it will be your responsibility to implement security measures like proper lighting, secure doors and windows, and even comprehensive alarm systems.
Consider a mix of high-tech and low-tech measures that are as effective as they are budget-friendly. This can run the gamut from trimming bushes and shrubbery near windows for better visibility to installing sufficient lighting. A full home security system will also be more than ideal. In terms of cost, this will set you back approximately $675, plus additional fees for monitoring if you use a security service.
Manage your property efficiently.
Finally, a property that’s rental-ready will need to be managed efficiently to be profitable. This will include tasks like advertising on the right platforms, vetting potential tenants, maintenance, keeping financial records, and many more. This may seem overwhelming to the uninitiated, which is why hiring a property manager to take over these responsibilities might be a great idea. It’s important, therefore, to know what to look for in a property manager to ensure that you and your property get the support that you need to reach your objectives.
Indeed, there’s infinite potential in investment properties, especially when it comes to profitability. However, it’s crucial to be on the right mindset and have the right strategies to get there. There’s no better way to start than by heeding these tried-and-tested measures that will put you on the right path.
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