Tips for House Hunting as a Property Owner
As a homeowner, house hunting can be a big decision. It can be exciting, challenging, and leave you feeling overwhelmed. We understand, buying property is a huge undertaking. Buying a home for yourself can be daunting, but buying a home for others to rent out can be even more stressful. Whether this is your first investment property—or one of several—there’s always something new when you’re house hunting as a property owner. If you’re struggling with looking for a place to rent out, we have tips for looking for that perfect spot.
Pick a Good Location
When you’re house hunting as a property owner, you want to make sure you’re investing in a good location. It can be challenging to find someplace that’s growing, but also still affordable. You also want to consider proximity to schools, jobs, and other fun spots. Once you find a location, see if there are property management companies in the area. Like Henderson, property management companies take the stress out of managing a property.
Make Sure the Property is Worth Your Investment
When house hunting as a property owner, you want to find a property that’s worth the investment. While you’ll make money back by renting out the property, that doesn’t mean house hunting for multi-million dollar homes.
First, consider how much rent is in the area. Renting in Northern Colorado is a lot less than renting in a big city. You want to make sure that you’ll be making a worthy investment before putting down that down payment.
Next, make sure you can handle the investment. While there’s no standard formula, on average it takes around 7 years to pay off an investment property. Your financial situation should be stable enough to handle the commitment of an investment property. Don’t just factor the purchase price. You will want to consider ongoing maintenance and budget for unexpected costs.
Finally, make sure you consider the resale value. Much like buying a home for yourself, buying an investment property is just that—an investment. We suggest house hunting in neighborhoods with good schools, good jobs, and low crime rates. The property’s proximity to amenities like shopping, dining, and parks is also good to keep in mind.
Make Sure You Can Maintain the Property
House hunting for a property that’s maintainable is key. As a property owner, your responsibility is to maintain regular upkeep, ensure the property is safe and in good condition Inside, regular upkeep looks like clean rooms, secure windows, and up-to-date appliances. Outside, upkeep is outdoor spaces that meet city codes, walkable pathways, and structural integrity. While this maintenance may seem basic, when house hunting as a property owner you must be ready for this responsibility. It’s also important to know what will be your responsibility, and what will be your renter’s. If this feels like too big of a commitment, rental property managers like Henderson can take care of this for you!
Hire a Property Management Company
If you’re interested in an investment property but don’t want all the responsibility, get in touch with us! As a rental property management company, we have a lot of experience with investment properties. Don’t hesitate to ask questions! Lots of things can come up when you’re house hunting as a property owner. Rental property management companies like Henderson know the ins and outs of the property management, leases, and more.
Document Everything
While house hunting, remember to document everything. While you might remember certain things about certain properties, keep notes and/or photos for each place. During and after the process, keep a record of all communication, including real estate agents, the seller, or property management companies. This record can be a helpful reference when house hunting as a property owner.
Trust Your Instincts
House hunting as a property owner takes a lot of time and energy, and it can be easy to overthink. If something doesn’t feel right about a property, trust your instincts and keep looking. At the end of the day, you know what you’re looking for.
Even if you have experience as a property owner, each real estate transaction is unique. Patience is key during the house hunting process. House hunting with a strategic and thoughtful approach will increase your chances of finding an investment property that meets your needs and aligns with your goals. Take your time, do thorough research, and choose a property that fits your needs and lifestyle. And remember, rental property management companies like Henderson are here to help.