Sunday, 18 November 2018
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This Old House - Do-it-Yourself

Acquiring a Rental Property? Learn these Tricks First!

Written by Posted On Thursday, 06 September 2018 06:40

The now-giant Airbnb is rooted in ingenuity and fueled by an unrelenting will to survive. Its founders were once like everyone else. They had 9 to 5s, and in some months they struggled with their bills, including their rent. October 2007 was one of those months. A conference was happening nearby, but all the hotels were booked. Seeing that as an opportunity, they bought mattresses and took in three guests. That was the first Airbnb booking, and the rest is history

Acquiring a Rental Property.

The amazing success enjoyed by AirBnB demonstrates that real estate is still an industry that pays off in inventive ways. You could enjoy some of the wealth going around with the right idea. Acquiring a property for rent can be a stepping stone to amazing things. So, how should you proceed?

Know your target market.

Before anything else, you have to be very clear on what sector of the renting market you want to target. Are you eyeing business travelers (pretty much like the ones initially targeted by the Airbnb founders)? Or do you want to get your earnings from tourists’ pockets? Having clear answers to these questions will help you decide what types of residential properties to acquire and where.

New York, for example, is a common destination for those who do serious business. High-rise condos and highly modernized spaces are going to be hits there. Dayton in Ohio, on the other hand, is a usual pick of those who want to enjoy the holidays. A vacation rental property with some native touches may be a good pick here. Generally, business travelers and leisure travelers have different needs; and the location of your property and the general atmosphere there is important in addressing those needs.

Decide with objectivity.

Remember this. You are not buying your property for yourself, so your sentimentality and personal preferences should matter less when choosing the properties to acquire. ‘Where will I earn more?’ is a more likely question than ‘Where do I want to live?’ The way you think does not always coincide with how your target market behaves.

Suspend your subjectivity as much as possible and try to be very objective every step of the way. The ability to think as if you are in your potential renters’ shoes is going to be helpful here.

Hire a manager.

Once the property is already under your name, the next big step is to find someone to manage it for you. Taking guests is not really as easy as just checking them in and then checking them out. There is some whole deal of cleaning involved. Sometimes, there is even the need to verify the identities of guests and deal with their peculiar requests.

People like you who have the mind of an investor or entrepreneur can’t often afford to spend too much time on such tasks. But a good property manager can. So together with your property search, also do a manager search on the side. The right candidate will save not only a significant chunk of your money but also a great deal of your sanity.

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