Real estate is a great investment to earn passive income. While there’s a high-risk factor in other investments such as forex, stocks, etc, - real estate has a proven history of making homeowners millionaires since the beginning.
If you are one of the homeowners who want to own multiple properties and make a cash flow from them for the long term, renting out your property is the ideal option for you
But before you decide to put your multiple properties available as rental properties in Buffalo, here are a few crucial things to remember.
Things You Need to Do Before Renting Out Your Property
1. De-personalise your property
While your rented property will remain yours, it's important to make space for your future tenants and help them feel like it’s their own. For this, you need to take out all your personal items from the property and create space for your tenant to move in and make adjustments according to their needs.
2. Fix those ‘maintenance request’ risks early
Simple, if it’s broken then fix it asap. They might don’t seem like a big issue but the small cracks and peeling paint will create a future problem and inconvenience for you and your tenant.
Remember, the more you delay these small issues, the bigger it will grow over time. So make sure to fix all these small fixtures before renting.
3. Make smart improvements
If you want to ensure good cash flow from your rented property, you might need to make improvements before renting it to someone.
Smart improvements based on your potential tenant's lifestyle will increase their interest and can result in increased rent to your pocket. For example, if you are renting out to young families, install a bathtub. Other than that, easy-to-clean benchtops and flooring options are always a winner.
4. Clean it
Your future tenants want to shift into a clean and organized home and if you can’t provide that then they won’t stay for long and you can’t claim high rent. Along with yourself, you can also hold your tenants accountable so that they leave the property as it was when they first moved in.
5. Update your insurance policy
The basic owner-occupier home and contents insurance won’t be enough when the property becomes an investment. You would need an appropriate landlord insurance policy. Landlord insurance covers you for many events including those unique to investment properties like tenant damage and loss of rent.
However, insurance policies usually differ between providers, so make sure to read the fine print when choosing the best-suited policy for yourself.
6. Get a depreciation estimate
Many people are missing out on claiming thousands in depreciation deductions. Depreciation is referred to as the natural wear and tear of the property and its assets.
As a property investor, you can claim this depreciation as a tax deduction each financial year.
When you are converting your home into an investment, reach out to a specialist quantity surveyor who can provide you with an appropriate depreciation estimate
Renting out your property will help you earn passive income and you can make money while sitting on your couch.
If you’re a property owner looking to put their apartments or houses for rent in Buffalo or a tenant who’s looking for rental properties in Buffalo Mike Silbak Real Estate and have a look at the best rental properties across the city.