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Expert Tips for Rentable Properties

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I have owned dozens of rental properties for decades and have gone through many steps on how a rental home will look like. You no longer have to paint the entire house yourself or repair the tub plumbing. That doesn’t mean I have something for the people who do it in their rental property. That means I’m not particularly good at it and I don’t enjoy it.

As far as my rental rehab is concerned, they have definitely evolved over the years. I used to ask what is the cheapest thing I can do to prepare my rent. Now I ask what I need to do to make it perfectly correct. Please make it nice. Make it highly desirable. There is a big difference between replacing plumbing, electrical outlets, lighting fixtures, and even water heaters in advance (relatively low cost) and doing these things when the tenant is at home (to deal with). It’s tedious and more expensive)).

For the record, and because these kinds of properties help me pay my bills — a discussion about the 2% rule, and how a $ 30,000 home is good or bad for you, or a good investment. I love discussions about things like that. I’ve rented two homes for the past two weeks, so I wanted to take a moment to talk about rehab and then actually rent a home.

Related: Rehab Note: Five Big Issues Distressed Properties Hiding (and How to Detect They)

Oh, and this little thing: on the first day I showed them, they rented more than I expected, that is, with a rule of more than 2% of real estate rent vs. cost.

One of the big misunderstandings about a $ 30,000 home is that it’s in the ghetto. It’s not. If you’re considering a $ 30,000 to $ 40,000 home to buy, rehabilitation has an additional $ 70,000 to $ 10,000 plus, and when completed, it’ll look like a $ 60,000 to $ 80,000 home. .. Rolling back your purchases and rehabilitating to long-term debt can be a great LTV. We have good value by completely remodeling the interior of the house we currently own. And we need to make important choices about the look inside and outside the house and make sure that people really want to rent them.

Rehabilitation

I’ve written about rental rehabilitation several times, so I don’t want to be superfluous, but I think it’s worth the synopsis. We look at everything and paint everything inside and out. That is the roof that needs to be replaced. Gutters are fixed or replaced. The outside is clean and, if necessary, add small root coverings and plants to pop the curb charm.

The interior is freshly painted on the walls, ceiling and trim. The floor (for hardwoods) will be redone with a dark stain. We use the same color paint, the same color trim, and the same color floor. I also started putting mixed stainless and black stoves in the unit, and I happened to put both of these stoves on sale and spent as much or less as the cost of their white counterpart.

The kitchen is great and has new counters, sinks, faucets and more. The plumbing will be updated. Everything in the tenant may call you sooner or later — what you don’t want to handle — we will handle it in advance.

In the last house, many of the windows in the house were replaced with vinyl replacement windows. If your home window is stock size, you can get a basic vinyl window for $ 120- $ 150 per window, and most people I find are $ 40 per window You can install them for $ 50 from. Our house is about 800-1,000 square feet and usually has about 10 windows. Is $ 2,000 a good investment in every new window? I’m sure it is. Will the new window excite the tenant? absolutely. Is the new window, efficient, easy to clean, easy to maintain, and hard to break, exciting to me? Yes!

Before listing of rental property

It’s one of the properties and I decided to list it in advance. I woke up about two weeks before I was ready. I took one photo of the front of the house and some photos of the interior of some of the previous homes. “These are our finishes and color schemes. The house is coming soon.”

The cost of the house was $ 28,000, the rehab was just over $ 10,000, and the rent was $ 950.

The phone will not stop ringing. My email didn’t stop the fight with the people trying to get into this property. It was constant.

Many people wanted to rent a house, but they couldn’t get in, so it was a little frustrating, just like the occupants imagined.

By the time I was finally ready, I called everyone and made three to four hours of continuous appointments. It was screened about 5 or 6 times that day, but the first person who entered the house applied for it (I talked about it at the time of pre-listing), and the next day, I made a deposit.

no Before listing of rental property

The next thing I did was decide not to put it on the list in advance and didn’t even put a sign in the yard.I posted it online Saturday Around the afternoon 2 pm..To Sunday In the evening, I made about 20 emails and another 5-10 calls. I scheduled the screening again.

The first person to appear was great, walking around the house and asking where to apply. I gave her her application and she filled it out. Around that time, the next couple came in. I asked if I was interested in the first person, and she needed to get me a deposit check to make sure she got her home. She said so.

First person: application, deposit, background check, etc. — and complete.

lesson

I kept asking how wonderful our house was. This is very helpful. Residents see a nice house. I don’t have to hear from them on my cell phone. We have also set the demand for our property as people are looking at the types of homes they can have for the money we are looking for.

Related: How to avoid over-improving properties: three key levels of rehab termination

The pre-listing strategy is not what I’m trying to do again. It wasn’t worth the hassle before taking the interested person home. It’s definitely worth it to put people back to back. I used an idea like 3-5 Open House before, but fixed someone at a particular time and made them feel they would miss it as they scheduled the time with you I found it much better to do it.

It also informs those who come that our home has disappeared early in the past. If you are interested, apply there (or you can fill it out online) and bring your deposit check. They don’t miss it.

We love spending just an hour getting great tenants. Take advantage of your location, rehab style, online marketing skills, etc. to get people interested in your property and get people to rent your property. Tenants of your property are faster, less costly to own, less time for something to happen to your vacant house, and more money in your pocket.

What are the best and worst things you have done in your renting business, and the best you are doing now to run your leasing business more smoothly, efficiently and most profitably. What is that?

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