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

Congratulations on investing in real estate. Owning rental property can be lucrative and fulfilling, even with all of its challenges and frustrations. You might be wondering what to do after buying your first investment property.  

That’s why we’re here. As experienced property managers in the Dallas and Fort Worth areas, we can help you navigate the rental market and everything that comes with it (including residents).  

How Does Purchasing an Investment Property Work? 

If you have already closed the deal, your next steps are to prepare the property for the rental market. You’ll have to make some minor renovations, assuming you bought a property that’s in good condition, as well as cosmetic updates. Make sure the home is clean and attractive; ready for tenants to move in.  

Price the home competitively, according to the demands of the market. Take a look at what other properties are renting for, and make sure you’re in the appropriate range. Overpricing a home will only leave it vacant for longer. Underpricing a home could leave you trying to catch up to market rents. What is the 2% rule for investment property? It says that the monthly rent for your property should be equal to or more than two percent of your purchase price. So, if you buy a home for $200,000, your rent should be at least $4,000. This is a bit unrealistic, especially in the current market. Instead of focusing on those investment “rules,” take a look at how the market is performing and what competing properties are renting for.  

If you have not closed on the property yet, partner with a property manager. This will give you an idea of how much you can expect to earn in rent, what you should budget for maintenance and upgrades, and what types of tenants you can hope to attract.  

Marketing Rental Homes for a Good Tenant  

Once your investment property is safe, habitable, welcoming, and attractive, you’ll want to find a good resident. This requires a strategic marketing plan, responsive follow-ups when someone calls with a question or a showing request, and smart tenant screening.  

A good marketing plan includes: 

• High-quality photos.
• A concise and informative description.
• Information potential tenants need, such as rental amounts and whether pets are permitted.
• Contact information for you or your property manager.
• Instructions for setting up a showing.

Fort Worth Property Management  

If you have not already partnered with a property manager, now is the time to do it. Ideally, you’ll add a great management company to your circle of experts before you buy your investment. But, if you already own the home, your management partner can help you turn it into a profitable rental home. We can help you with marketing, showing, and screening. We can also be the point of contact for your tenant as we lease, manage, and maintain your property.  

How long should you hold an investment property? When should you begin thinking about increasing your portfolio? What can you gain from a 1031 exchange? The right management partner will help you earn more as an investor. There’s more to what we do than simply collecting rent and responding to maintenance requests.  

We’d love to be part of your success as a real estate investor. Contact us before you invest, or right after you do. Please contact us at Trend Property & Management. We’re here to help with all your Fort Worth property management needs. We also serve Keller, Saginaw, Hurst, Weatherford, and the surrounding areas.