Real estate investing can be a lucrative way to generate passive income and build long-term wealth. However, for many first-time investors, the process of finding, financing, and managing a rental property can be overwhelming. In this blog, we will guide you through the process of investing in a rental property in Atlanta, with a focus on how Nance Homebuyer‘s team of buyers can help you find the perfect properties for your budget, goals, and lifestyle.
What is involved in managing rental properties?
Whether you’re interested in:
- Managing your rental property on your own, or
- You’re a property manager taking on your first property and looking to optimize your process
The property management side of things is the same.
There are essentially 4 main areas of property management:
- Obtaining tenants
- Manage those tenants
- Managing the property itself (i.e. maintenance and repairs)
- And handling your property accounting (and other paperwork)
Below, we’ll be covering each of those areas in detail.
By the end, every piece of the puzzle that is rental property management should be clear.
First, let’s start with the very beginning of the process: obtaining tenants.
Part I: How to obtain tenants
1. Find tenants
First, let’s go find some tenants.
There are a few ways to go about that and steps to keep in mind:
Add and update your property’s listing on listing platforms
Property listing platforms like Zillow and Redfin are a great way to get free exposure.
Make sure your property is listed on every major platform as well as that the property’s information is correct and photos are updated.
Advertise on those platforms
Marketing your property online through ads on said listing platforms is a good way to get additional exposure above what other competing properties are getting in your area.
Host an open house
Good ol’ fashion never goes out of style, and no matter how digital we become, you need to host open houses to convert most tenants to apply.
Allow leads to apply online
Despite the above, you still want to allow prospective tenants to apply online to make it as easy as possible to apply.
2. Screen tenants
Once you have applications coming in, it’s time to make sure you’re letting the right tenants in that are likely to:
- Pay rent (kind of important)
- Take care of the unit
- And be generally reliable in terms of their responsibilities
It’s a great feeling to be able to offer amazing, safe, and comfortable homes to families and individuals.
However… real estate is business, and you need to have a reliable system for making sure prospective tenants are going to be reliable.
Screening can be a bit of a pain without some assistance– it typically includes running a background check and credit check, depending on your preference– which is why we suggest using property management software.
That’s because it can screen your tenants right from within the app, greatly simplifying the process.
3. Complete the lease
Once you’ve screened the tenant, it’s time to complete paperwork and get the lease signed.
Finalizing the agreement isn’t the first step however. First, you need to draft your lease and run it by a legal expert who can advise you on whether you need to change anything or not.
It’s vital to make sure that you’re not only covering yourself but also that you’re providing every right owed to the signee and tenant, such as fair housing laws.
Once you’ve done that, the process for signing each lease will be:
- Review the lease with your tenant
- Sign and complete the lease
- And make sure both you and your tenant receive a copy of the completed agreement
Step 1: Define Your Investment Goals
Before you start looking for a rental property, you need to define your investment goals. Ask yourself questions such as:
– What is your budget?
– What kind of rental property do you want to invest in (single-family, multifamily, commercial, etc.)?
– What is your expected return on investment (ROI)?
– Do you plan to manage the property yourself or hire a property management company to manage the tenants and property on your behalf?
– How long do you plan to hold the property?
Once you have a clear understanding of your investment goals, you can start looking for properties that match your criteria. You’ll want to have all of these things in mind to help narrow your focus when buying investment property in Atlanta.
Step 2: Find the Right Property
Finding the right rental property can be challenging, especially in a competitive market like Atlanta. However, with the help of Nance Homebuyer‘s team of buyers, you can streamline the process and find properties that meet your investment goals.
Our team of buyers has extensive experience in the local real estate market and can help you identify properties that are undervalued, have good rental potential, and are located in desirable neighborhoods. We can also provide you with detailed market analysis and property reports, so you can make informed investment decisions.
Step 3: Financing Your Rental Property
Financing your rental property is another critical aspect of real estate investing. There are several financing options available to investors, including traditional mortgages, hard money loans, and private loans. You’ll want to fully understand your available options before committing to a lender.
At Nance Homebuyer, we can help you explore financing options and connect you with lenders who offer competitive rates and terms. We can also provide you with detailed financial analysis, so you can determine the best financing option for your investment goals.
Step 4: Managing Your Rental Property
Managing a rental property can be time-consuming and challenging, especially if you are new to real estate investing. However, with the help of Nance Homebuyer‘s recommended property management services, you can streamline the process and ensure your investment is profitable.
When you hire the right team to help you with your property, they can take care of many aspects of the management process. This includes tenant screening, rent collection, maintenance and repairs, and lease renewals. We also offer 24/7 emergency services, so you can rest assured that your property is in good hands.
Taking the Next Steps
Real estate investing can be a lucrative way to generate passive income and build long-term wealth. However, finding, financing, and managing a rental property can be overwhelming, especially for first-time investors. With the help of Nance Homebuyer‘s team of buyers and recommended property management services, you can streamline the buying process and ensure your investment is profitable.
If you’re ready to invest in a rental property in Atlanta, contact Nance Homebuyer today to schedule a consultation with our team of experts. We are committed to helping you achieve your investment goals and build long-term wealth through real estate investing. Give us a call at 770.746.8608 today to learn more about what we can offer you!