Are you seeking a way to earn passive income? Well with real estate you can make that happen. However, you have to be prepared to play certain roles when it comes to being a landlord. Also, you have to learn how to do it the right way in order to succeed.
At Century Properties Real Estate, we invest in both long and short term properties. However, property managers will tell you that the short-term rental game will likely lead you to the path of success. Short-term rentals are on the rise but that doesn’t mean long-term rentals will lead you straight to your doom, no, in fact, long-term rentals have also been a great source of passive income in the real estate game.
The best part of real estate is that if you put only 15% or 20% into a property, you will still receive 100% of the rental income!
Interested in getting started? These tips will not only help you make a sale but also to make sure the home is in perfect condition and the right environment for its future tenants.
The Right Way To Manage Property
Managing property the right way is all about communication, hard work, and transparency. Open communication is key. Make sure you also set the right expectations.
For example, if you describe a feature that is not available in the property and you fail to communicate your mistake to the tenants, a major problem will arise and result in a complaint. However, any issue can be resolved with communication, you just need to determine the problem that needs to be resolved.
Moreover, if you run the property like a super host, you’ll soon notice the benefits.
Get To Know The Property
When you purchase a property the first thing you should do is get to know the home and all the systems that comprise a home. Each home has a specific service interval and lifespan. You don’t want any of the systems to fail due to the lack of preventative maintenance or care.
Plan To Reinvest Your Own Home
Running your home as a vacation rental? Well, you need to plan to reinvest it with part of the revenue you earn in your home during that year. This will ensure your home stays in top condition as you rent it out.
So the more guests you have in your home, apartment or condo, the more useful your home will be. Especially if you have a luxurious home that people will pay top dollar for.
Generate The Revenue of Your Home
How much your home will make in revenue is dependent on three key factors:
- The size and amenities
- The specific location
- How luxurious your home is
Work With a Real Estate Agent That Knows What They Are Doing
Real estate agents’ knowledge is often varied. Some have great insight into the industry while others know little to nothing about it. They might be able to offer property management tips, but it is important to work with agents who understand the business. Especially in finding, buying, and managing homes that are intended to be used as vacation rentals.