o you finally found the strategies has their advantages
perfect property to buy and and disadvantages.
to rent out, more commonly
referred to and a buy and hold The Housing Choice/Section 8
investment. What you do next will program pays promptly on the
make all the difference in the first of the month, but with
world in your cash flow going declining funds for participants,
forward. Assuming the house is the tenant’s voucher may not be
currently vacant; we recommend enough to cover your rent amount.
that you put in the purchase and Taking payment from the tenant
sale agreement some language that over the voucher amount is a
will allow you to market the federal offense and you really
property before closing. don’t want to do that.
When you make the offer to Leasing with an option will
purchase a vacant house, go ahead generally allows you to charge
and include a provision that will slightly higher rents since the
allow you to place For Rent signs intention of the renter is to
on the property and permit you to purchase the property. Remember
start marketing the property to that the tenant has the option to
perspective tenants. Now that you purchase, but is not required to
have the right to market the do so. If the tenant elects to
property you need a marketing exercise their option, you are
plan. obligated to sell at the
prearranged option price. So the
Things to consider: Will you want risk here is if you intended to
to accept Housing Choice (Section buy and hold, you may end up
8)? Do you prefer rental or would selling the property before you
you consider lease with an option get the full value of the
to purchase? Each of these property.
you have a reasonable pet policy
If you just want to rent it, we which includes the breeds you
recommend a minimum twelve month will and won’t accept. Have a
lease, and if you can get them to fair and reasonable pet deposit
sign for twenty four to thirty and a standard cleaning fee. Make
six months you decrease your sure you check with your
largest expense, turnover. insurance carrier as well. Some
Locking in a rental rate for insurance companies have their
three years is an effective own pet restrictions and cancel
selling tool to present to the your policy or even could void
renter. This option is the best your insurance claims if not
for long term wealth building. enforced.
It is best to determine what your Develop a comprehensive
application guidelines are and application to gather all the
put them in writing. Be sure you information you will need in
thoroughly understand landlord order to evaluate a prospective
tenant law so that you don’t tenant. We also recommend that
violate it and end up in a you consider doing criminal
lawsuit. These guidelines will background checks.
apply to everyone so consider
them carefully. Do not make Determine the rent amount that is
exceptions for one party or you competitive for your area. Do a
may end up in a discrimination market analysis to find
suit. comparable properties for rent.
Once you determine the average
Will you allow pets? We have rental rate, we suggest that your
found that by accepting pets, you rental amount be at the average
greatly increase the quantity of or just below to move your
potential tenants. Make sure that property first. Tenants are most
concerned with the number of everywhere people go. You should
bedrooms and bathrooms. ask for permission to place these
ads in advance.
Now that you have all the
administrative work planned out Take copies of your flyer to
and your target market pegged you schools in the summer so starting
will need to go into marketing teachers who may be new to the
mode. Marketing consists of print area will see them. We take
and electronic media. Print can flyers to police and fire
be an ad in the local stations and note on the flyer
neighborhood newspaper and that police and fire personnel
flyers. get $50 discount per month. Who
better to look after your
Flyers are effective and property than these brave public
inexpensive ways to get the word servants?
out. Make up a color flyer with
pull of tabs at the bottom with With today’s availability of the
your number on the tabs and internet, you don’t want to
general info to remind the person overlook marketing there.
who pulled the tab what they are Tenants look online using search
calling about. To generate engines to narrow their focus.
interest, before you start You should do the same with the
posting the flyers pull off a few search engines to find where the
tabs to create a sense of urgency tenants are looking and put your
that other people have an ad on those internet sites. There
interest in the property. Post are some free sites like Craig’s
the flyers near your rental List and there are many you have
property on phone booths, coke to pay for. It can get very
machines, neighborhood bulletin expensive. For example in my area
boards, at churches ands there are a dozen sites and the
average cost is $30 per site for a total understanding of landlord
a 30 day ad. Some sites are tenant law. All the processes are
limited to use by professional established, rental rates are
property management companies. known and a marketing machine is
already in place. By selecting a
If all this is too exhausting, I management company you can have
saved the best for last. The all the benefits of real estate
easiest way to find tenants is to investing without having to deal
use a property management with the day to day headaches.
company. This way you don’t need
About the Author:
Mark Lackey is a real estate investor in Atlanta and works with The REI Team at Solid Source Realty, Inc. http://www.theREIteam.com. He frequently helps other investors in their pursuit of financial freedom as the Vice President of Solid Source Property Management, Inc. http://www.solidsourcepm.com
Read more articles by:
Mark S. Lackey
Article Source: www.iSnare.com 
