Last year, the Red Bank borough introduced a master plan to build 181 new rental units. As a result, this area turned into a hotbed for investors.
Of course, securing a rental property in a promising area is only the first step toward making it profitable. This is particularly true in places like New Jersey, where market trends and housing demand are in constant flux.
Want your rental to become a reliable source of income as soon as possible? If so, read on for some tips every real estate investor should know!
Check Local Regulations
Your first step should be to check your zoning regulations and building codes. This will help ensure your property is compliant. For instance, your rental may need to have enough smoke detectors or parking spaces.
You should also look into Red Bank's landlord-tenant laws. This will help you decide how much to charge for rent or security deposits. Cutting corners on this front could lead to serious legal trouble.
Change the Locks
When investing in property, security should be a chief concern. Changing the locks will help you control who can access the property. There are two ways to do this: rekeying the existing locks or replacing them.
Rekeying the locks is usually cheaper, and it still ensures the old keys won't work. That said, if the mechanism is starting to deteriorate, it may make more sense to replace the lock.
Do a Property Walkthrough
After buying rental properties, it's always a good idea to inspect them. Take photos of each room to document its condition. Make a note of any damage or deferred maintenance tasks.
The purpose of the walkthrough is to verify that the rental is in good enough condition for new tenants. Down the road, you can let tenants inspect the rental themselves and sign off on its state.
Transfer Utilities to Your Name
Many landlords split utility costs with their tenants. If so, you'll need to transfer the relevant utilities to your name. This involves contacting the providers and giving them your information.
In some cases, you may want to schedule a meter reading. That way, you'll ensure you're billed accurately and avoid usage disputes with the previous owner. This usually involves registering a new account.
Create a Lease Agreement
All real estate investment strategies rely on protecting your legal rights. With a rental, you can do that through a lease agreement. This is a legally binding document that protects both you and the tenant.
Your lease agreement should cover everything from the rent due date to the late fee policy. It should also note your tenant's maintenance responsibilities. Consult with a lawyer to ensure your lease is enforceable.
Finding Success as a Real Estate Investor
Being a real estate investor isn't a walk in the park. On top of everything we mentioned above, you'll still need to manage your rental. If you don't have experience in these matters, consider hiring someone who does.
At PMI Inspired, we offer a full suite of investment property management services in Red Bank, NJ. We also back our services with an on-time rent guarantee. Get a free rental analysis right now!
