If there’s one thing in the United States that will always have value, it’s property. Whether you as a landlord of single-family residential properties or commercial buildings and condos, the bottom line is that you have a resource that people need.
While real estate development is one of the oldest and most lucrative industries globally, it takes much skill and an eye for opportunity. Continue reading to get some tips that will help you succeed as a new landlord or property owner.
If you happen to be driving through a residential area and see a sign that reads “display homes for sale,” you owe it to yourself to stop and take a look. Display homes are residential units used to model various floorplans for new homes being built in the community. What makes display homes such a wise investment is that they tend to be less expensive than most new homes, and being that many of them are modular homes, you can move them to the location of your choice or leave them on site.
If you live in a major city like New York, L.A., or San Francisco, where real estate is highly contested, you know that space is at a premium. As ways of saving money and maximizing space, cities such as these have a plethora of high-rise condos, mixed-use buildings, and commercial buildings that have been transformed into residential units.
If you plan to have a multi-use building, you’re going to need mixed-use insurance to protect your commercial property and your tenants’ interests. Mixed-use coverage is more expensive than most types of property owner’s insurance, but it’s necessary when you have business owners and residential tenants sharing space.
Being a property or building owner is much more difficult than you might imagine. It would be nice if all you had to do were purchase a property and wait for someone to show interest in it, but being a property owner is much like being a business owner. You have to worry about development costs, offering different amenities to attract tenants, marketing your properties, and more.
If you’re a first-time landlord or property owner, it’s a good idea to leave the property management to the experts. Property management companies provide services ranging from screening potential tenants and collecting rent to the maintenance of the property and enhancing amenities. Property management services may not be cheap, but it’s hard to put a price tag on the type of expertise they provide.
Any successful business owner will tell you that marketing is essential to building a successful company. However, product creation plays a large role in your marketing efforts as the message you send to consumers. In other words, you need to have a buyer persona in mind and purchase and develop properties that are reflective of your ideal tenants.
For instance, are you more interested in leasing to families or single people? Would you rather rent to young professionals, working-class people, or middle-aged professionals? Believe it or not, the answers to those questions will tell you the kind of property in which you should invest.
Being a property owner is a great way to generate revenue and secure your family’s financial future for generations. Being a landlord is hard work, but as long as you find creative ways to develop and use residential and commercial properties, you should profit and excel.