We work with a number of new real estate investors who quickly become overwhelmed with the requirements and steps of buying a property and renting it out to tenants. Even experienced investors can make expensive mistakes or find themselves dealing with difficult situations in the course of acquiring a property.
Our goal is to help you make good decisions and set yourself up for a better investment experience. If you’re planning to buy an investment property in Green Bay, we have three specific things you need to know as you move forward.
Know the Green Bay Rental Market
Hopefully, you’ve done a little research and you understand the rental market in the region that you’re buying. Once you own property and want to rent it out, understanding the nuances and trends of the local market is essential. This knowledge will help you price your property appropriately, market it to the largest number of potential tenants, and make the necessary updates and upgrades to attract those tenants.
Before you buy an investment property, you need to know if most of your tenants will be families looking for good schools, professionals who want an easy commute to work, students and roommates, or retirees who will want access to recreational and entertainment activities. Find out if the area is walkable or if a car is necessary. All of this information will help you identify and purchase the right investment and prepare for how you’re going to rent it out.
Plan and Budget for Maintenance
Many new investors forget that their expenses do not end once a property is purchased. There will be routine and emergency maintenance costs that cannot be avoided. Even if your home is new and in excellent condition, things will break and repairs will be needed. You’ll have to be responsive and ready to meet the needs of your tenant and your property. We recommend that you put aside a reserve so you can easily and quickly pay for those maintenance issues as they arise.
Establish a maintenance budget and a plan for getting the property ready for the rental market. Don’t buy an investment home that needs a lot of work. Not only will you have to spend a lot of money on renovations and repairs; you’ll also delay the listing. The longer you spend preparing the property for the rental market, the larger your vacancy expense.
Find a Green Bay Property Manager
Working with a professional Green Bay property manager will provide you with a positive and lucrative rental experience.
You’ll want to work with a company that has experience and an excellent reputation, but you also want goals and values that match your own. Look for a long record of effective property management, and talk with them before you buy your investment home. You should get some idea of how much rent you’ll earn and what type of tenant you’ll attract. Working with a property manager will help you save money on things like vacancy and maintenance. You’ll also earn more with better tenants, higher rents, and an efficient management system.
These are only three immediate tips that come to mind. There’s a lot more we can tell you about Green Bay investment properties. Contact us at Blue Frog Property Management.