If you've thought about investing in real estate, then there's not much more to think about!
But while it's great to have an investment property, you'll soon find out that being a landlord is a lot of hard work. If you're in a great market like San Mateo, CA, you'll soon find that there's a lot of competition as well.
So what do you do? You've got to make wise financial decisions if you want to succeed in real estate investing for the long-term.
Here are the smart money tactics you should know about:
1. Decide Your Investment Strategy
As a beginner, you want to focus on one strategy with your real estate. You may prefer short-term or long-term rentals, for example.
You can always add a different investment strategy later. You can also change your investment strategy if one isn't working.
But first, you want to focus on the easiest investment strategy that you can jump into. You'll also have to consider the type of property you own and its location.
Small studios are often better for short-term and long-term rentals. Larger houses are suitable for long-term rentals.
2. Prepare for Renewals and Evictions
You'll have to prepare for both eventualities before you rent out a property. If you have a great tenant, start thinking about how you can get them to renew their lease.
This is one of the best ways to make money for a long period of time. As long as you have a responsible tenant, you won't have to stress too much about financial stability.
But you'll also have to prepare for a possible eviction. A report from March 2023 showed that over 5 million Americans were behind in rent payments.
You have to assess the possibility of this happening with your tenants. Have they missed payments or consistently made late payments? If it's the latter, you'll have to prepare for a possible eviction if they keep missing payments.
If you put this off for too long, you can end up losing money. You don't want to keep a tenant who won't pay rent when it's due.
3. Hire a Property Manager
Investing in real estate can be rewarding but burdensome at times. The best solution is to hire a property manager to take over.
They'll ensure that your property is ready to rent. They'll also help you find tenants and can handle any task once you've signed a lease agreement.
These responsibilities can include rent collection, arranging for maintenance, handling general issues, etc.
Follow These Smart Money Tactics
Now you know the best smart money tactics to follow for making money with real estate.
You want to first decide whether you want to focus on short-term or long-term rentals. Make sure you have a rotating list of potential tenants either way.
You'll have to assess whether your tenants are likely to renew or leave. You also have to be prepared to evict them if needed.
To ensure you have a smooth process, make sure you hire the best property manager in San Mateo. Five Star Property Management is here to help you get started.