15 % OF RENTERS ( NATIONWIDE ) WERE BEHIND ON RENT PAYMENTS AS OF OCTOBER 2022 .
SOURCE : CNBC . COM
Property owners can work with a property management company for a percentage of the rental income in exchange for their services . noted that “ finding good tenants in our area is not difficult .” But again , there is effort involved . Actively marketing your properties is crucial . Dias uses the Affordable Housing website , which also lists on Zillow and other real estate sites , to put her available properties in front of potential renters . Bowman echoed Dias on using the internet . “ People shop for everything online now , even homes . Post your home on sites that target rental customers ,” she said . But Dias goes low-tech too . “ My daughter made me double-sided , customized ‘ For Rent ’ signs that I place in front of my units .”
LOCAL PRO :
With multiple , diverse options in her residential rental property portfolio , Deborah Dias has built a successful business out of real estate investing . But her efforts are about more than making money . She describes the endeavor as continuing a family legacy . “ My father ’ s parents bought a property in the San Francisco Bay Area at a time when people didn ’ t want to sell to Blacks . In fact , sellers didn ’ t even want to show them homes . Many times , my grandparents would have to have white friends preview the houses for them ,” she said . Eventually , her grandparents were able to purchase a duplex , and while they lived downstairs , they rented out the upstairs unit . “ This was our family ’ s introduction to ‘ income property ,’” Dias said .
When her dad grew up , he continued in his parents ’ footsteps and bought a rental property . Dias stressed that he saw rental property investing as more than business . “ In our family , rental property ownership was considered what today might be called ‘ socialpreneurship ,’” she said . Their motto was and hers is : Make it better than you found it and provide a beautiful , well maintained , good value property .
TO THE POINT :
Local rental property investor Deborah Dias frequently buys properties in need of some TLC , but steers clear of those that need major overhauls . “ I only buy fixer-uppers with little to no structural damage — no roof or foundation headaches , etc .,” she said .
You want renters , but the right renters , as Dias explained . “ It ’ s not necessarily hard to find good tenants , but you have to be patient to find those that meet your specific criteria ,” she said . She stressed the importance of a rigorous vetting process . “ I require fully filled out applications , with names , addresses and phone numbers of current and previous landlords and employers .”
When you ’ ve got renters moved in , you ’ re not done . When there ’ s an issue at a property ( a busted pipe , a faulty light switch ), you ’ re the one your tenants call to sort it out . And if a tenant gets behind on rent , you have to make tough choices . Dias is glad she ’ s only faced the eviction decision once . “ I try to work with tenants if they get behind , but they must show solid effort to get back on track . Good communication is key ,” she said . You can take many of these tasks off your plate by working with a property management company , but they ’ ll take a percentage of your rental income in exchange for their services .
The answer to whether the rental market is a smart investment strategy for you lies in your answers to a few other questions , according to Dias : “ What is your ‘ why ’? Is it strictly for immediate money ? Is it for a long-term investment ? Do you feel you have the temperament to deal with renovations , repairs , tenant relations , neighborhood surroundings , taxes , rental agreements , workers , property managers , etc .? Do you have enough money for the purchase price , renovations and the wait time it takes to get it rented ?” she said . “ You have to think through every piece of it to know if it ’ s a good fit .”
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