After buying a rental property in Riverdale, GA, the logical next step is to maximize your ROI. The key to this is building the right habits.
Why are good habits important? Simple: starting off on the right foot will determine how much money, time, and frustration you'll save as a landlord. The more you invest early, the faster you'll reach your financial goals.
Ready to start managing your new Riverdale investment? Here are some tried-and-true tips every real estate investor needs to know!
Have Solid Bookkeeping
Any real estate investment is a business, so you should treat it like one. This involves using accounting software to track your expenses and income. You need a clear record of your mortgage, rent, maintenance expenses, etc.
Doing so will ensure you aren't overwhelmed come tax season. It may also be a good idea to talk to a tax advisor to confirm your tax obligations. For instance, you may need help calculating the self-employment tax.
Get the Right Insurance
A big part of investing in property is knowing how to protect it. For starters, you'll need landlord insurance. This will cover damage to your property's structure and protect you from loss of rental income.
It's worth noting that landlord insurance doesn't protect all the belongings inside your unit. For that, you'll need renters insurance. This isn't required by law in Georgia, but you can still add it as a lease clause.
Have Realistic Goals
Not all investment strategies will lead to immediate profits. This is particularly true if you're still paying off your mortgage. In this case, most of your rent payments will go toward the mortgage, plus the property upkeep.
Even without early profits, your Riverdale property is still valuable. Rental payments allow you to build equity, which pays off in the long run. Keep track of property market trends and let your investment work for you.
Put Everything in Writing
Having a solid rental lease is one of the best ways to protect your interests. Make sure the lease outlines your policies on anything you deem important. This includes pets, subletting, late rent, noise complaints, etc.
Whenever possible, your communication with tenants should be in writing as well. This includes giving them notice about showings and maintenance. In the case of a dispute, these records can be a lifesaver.
Consider Outside Help
When it comes to maximizing real estate profits, it makes a lot of sense to hire a property manager. They can help you vet tenants, collect rent, advertise your unit, execute leases, and more.
Most importantly, a property manager can field late-night calls and other emergencies. If you prefer a hands-off approach or don't live near your unit, this can save you from working around the clock.
Finding Success as a Real Estate Investor
The bottom line: being a real estate investor isn't a walk in the park. As long as you take your venture seriously, though, success should soon follow. Use the tips we shared above as a starting point for your journey!
Need some help with determining when your Riverdale property will start bringing in major profits? At PMI South Atlanta, we can help you find this out within minutes -- simply use our ROI calculator!
