Real estate is an excellent investment if you choose your property wisely and are ready for the commitment. To reap financial benefits, you must understand the basic elements and responsibilities of ownership. If you're a first-time investor looking to buy a rental property in Arkansas’ Twin Lakes and Ozarks areas, Mountain Home-based Gilbert Realty shares essential information to help you start on the right foot.
4 Facts New Real Estate Investors Should Know
Property Taxes Rise
If you’re paying property taxes on your home, you might expect your payment to be similar for a rental house. However, you should expect that number to increase significantly when you buy an investment property. If you plan ahead and estimate the tax, you can include it in the rent charge and still earn a sizable profit.
Responsible Tenants Are Valuable
The wrong renter can make your life miserable, causing problems by failing to pay their rent on time, damaging the structure, or disturbing the neighbors. Screen prospective tenants personally and financially to get a good idea of how they would behave in your rental. Once you find a reliable tenant, try to retain them — some landlords even offer to forgo a rent increase to convince a renter to remain.
You Must Stick to the Rules
Your lease is a legally binding agreement, so refer to it before you make decisions about your real estate investment property or the people who rent it. The contract defines not only your rights but those of your tenants, and breaking it could result in expensive legal issues.
It’s Critical to Plan for Repairs
If you own property, you know problems can catch you by surprise. Create an emergency fund so you’re prepared if you suddenly need a new furnace or roof repair. Deposit some of your profits each month in a separate bank account to build a cash reserve.
Finding the right property is the first step toward becoming a successful real estate investor. Call Gilbert Realty at (870) 425-6282 to speak with a knowledgeable agent about what you’re looking for in a building. Whether you want a lakefront property for a vacation rental or a home with acreage, they will help you find a place to suit your needs. Visit them online to search their listings and check out videos full of valuable information from their real estate agents. Like their Facebook page for updates from the business.