6 Steps for Becoming a Successful Rental Property Investor in 2023

Hello! My name is Roland, and I am the rental property investment Zen Master. I am also the property manager for PMI JCM Realty Group, where we manage properties from an?asset management perspective. Additionally, I am the president-elect for the Tampa Chapter of The National Association of Residential Property Managers.

The title of today’s article is…

6 Steps for Becoming a Successful Rental Property Investor in 2023

You might be ready to take the leap into?rental property investment?this year, with hopes of building a profitable portfolio and nest egg of wealth. But to be successful in real estate investing, you’re going to need a roadmap to follow. Follow these steps and realize your dream of rental property ownership and management!

1. Before You Buy

Before you even consider buying real estate property, you’ll want to get a few affairs in order. Line up your financing options and work with your investment professional or accountant to make the best financial decisions about loans, your savings, and earnings potential. You’ll also want to do your homework and be comfortable with the following:

• Robust understanding of your local real estate market.
• Knowledge and resources for measuring investment property success.
• Narrowing the best-fit properties, i.e., single-family, multi-family, or commercial properties.
• Assess your investment risks and ROI potential.?

2. Securing Your First Lucrative Property

When you start?property hunting, create a checklist for yourself to use as you evaluate the earning potential for each. Don’t be swayed by impulse or high-pressure sales tactics. Calculate investments, ROI, expenses, interest rates, taxes, and financing. You’ll also want to prepare yourself for the purchasing transaction, which includes potential negotiations, maintenance, and closing processes. Follow these steps:

• Research each property thoroughly to assess the location, rentability, tax rates, market trends, condition, etc.
• Figure out your finances to know if you’re paying cash, securing a mortgage, or exploring other financing options.
• Analyze the deal to crunch the numbers. You’ll want to know worst-case scenario earnings and follow the 1% rule (rent is 1% of the purchase price.)
• Make your offer and prepare to negotiate. Walk away if your numbers don’t align.

3. Assembling Your Support Teams and Vendors

Becoming a successful rental property investor means recognizing what you?don’t?know and assembling a support team to help. Don’t invest without having a trusted advisor or CPA. Don’t sign a lease with any tenants without first working with a real estate attorney to craft your lease language. And don’t try to DIY your property maintenance when you should be working with professional HVAC techs, plumbers, roofers, electricians, and inspectors. And vet each of these vendors thoroughly before hiring or working with them long-term.

4. Embracing Rental Property Technology

Probably your most valuable asset as a successful rental property investor is your time. And you can save yourself plenty of time when you’re smart about leveraging all the best property management technology. There is event management software, smart-home technology, digital key management, digital rent collection platforms, and more. Streamline every tedious process with an innovative tech-based solution so you don’t get bogged down in task management.

5. Quick Tips for Successful Property Management

Keep these insights in mind, too, as you embark on your rental property ownership journey. Mindset matters, and your perspective will help set you up for success.

• Owning rental property is more than just a revenue stream. It’s your chance to contribute to your community and to the lives of your tenants.
• Combatting depreciation and property maintenance is going to be a constant initiative.
• You’ll face unexpected setbacks beyond your control. It’s ok; just be sure to plan for those challenges.
• Renters will expect you to handle everything. So, always be communicating and setting the right expectations.

6. Working with a Rental Property Management Firm

You’ll experience a fast track to rental property portfolio growth and earnings when you partner with a?rental property management firm?like PMI JCM Realty Group. Take the guesswork and hassles out of everything from buying property and marketing your rental to signing tenants and building a portfolio. Let our team handle renter communication, rent collection, property maintenance, and everything in between. And with a proven firm in your corner, you’ll see portfolio ROI quickly and more consistently.

When you’re ready to jump into rental property investing, keep these steps in mind. And connect with our?expert property management?team today to learn more!

We Know How to Get Portfolio Results

For insights to boost your vendor relationships, portfolio performance, or bottom-line ROI, consider signing up for?our free webinar:?How to Streamline Your Rental Portfolio for Maximum Growth!?Rental property investors will always find something innovative worth applying.

Moreover, you can get answers when you connect with us on social media as well! Share your concerns and participate in our?Facebook Group?discussions, which are great for discovering answers to the most pressing rental management investment questions. Join the insightful conversations and collaborate with top property managers!?

Reach out to other property owners interested in achieving similar rental property portfolio ROI goals and learn about more effective management strategies. And should you require a more detailed or tailored solution, hop online and schedule a meeting?on my calendar!