The rental market is enormous. In every city and every state, there are people on the hunt for a place to call home or simply a vacation spot that beats a crowded hotel. If you feel like you’re ready to step into the world of real estate rentals, today’s tips, brought to you by Bianchi Realty & Property Management, are written with you in mind.
Second home versus investment property.
You may think of your second home as an investment property, but your bank looks at it from a very different angle. A second home is one you buy with the intent that you and your family will live there for a stretch of time. A vacation rental, on the other hand, is purchased specifically to generate income. Either route may call for a bigger down payment and come with a higher interest rate. The good news is the rental income you bring in can help offset those added costs.
Form an LLC to shield your personal assets.
An LLC is a formal business structure that comes with a lot of perks. Industry resources point out that landlords in particular benefit from this setup because it keeps your personal and business property separate and helps limit your personal liability. Rules for forming an LLC vary from state to state, but you generally have two options: hire an attorney to set it up for you, or use a formation service if cost is a concern.
Lean into online and video marketing.
Marketing tends to feel intimidating to a lot of first-time property owners. The reality is, it doesn’t have to be. If you’re handling the marketing yourself, social media is the place to be, especially because of how well these platforms support video. Even if you’ve never edited a video before, you can quickly stitch clips together using free tools online. That lets you show the home from several angles or during different seasons of the year.
Invest in durable carpet and furnishings.
If you’re renting out a furnished property, plan to spend on durability up front. For furniture, industry guides often suggest synthetic microfiber as one of the toughest fabric options. Pay close attention to your flooring, too, especially if you’re going with carpet. Steer clear of low fiber density carpets that have to lean on extra-thick padding. They tend not to hold up much beyond a couple of years of normal wear.
Stay ahead of maintenance.
Whether your property is a short-term rental or a long-term family home, it’s on you to stay on top of routine maintenance. Doing so both improves the renter experience and protects your investment. Make a habit of swapping HVAC filters, scheduling pest control, and handling smaller issues like leaks or cracked windows as soon as they pop up. You may not be legally on the hook for every little thing, but the more proactive you are, the better off your investment will be.
Partner with an experienced property management firm.
Running an investment property can quickly become a lot to manage. Teaming up with a seasoned rental company like Bianchi Realty & Property Management Group can lift a huge amount of that weight off your shoulders. Our local agents are seasoned pros who’ll work alongside you to keep your investment producing a healthy return.
There’s a lot involved in owning a rental, from choosing the right type of mortgage to figuring out how to film and share videos of your property. You can absolutely tackle plenty of the work yourself, but don’t hesitate to bring in reinforcements, whether that’s an attorney to help you set up your business structure or a property management team to keep things humming along.
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Written by: Charlotte Meier