Choosing the right place to advertise to find that special tenant you are looking for depends on “who” you are looking for. It all depends on the type of tenant you have in mind as your perfect tenant. For example, when we’re marketing to a younger demographic it’s wise to place advertising online.
Statistics today show us that 96% of Millennials have social media accounts. They spend their time on the Internet. Using online sources to attract qualified renters makes sense.
While we still see some of the older demographic checking offline sources it’s also true that baby boomers have increased their own social media usage by over 42%.
Finding your ideal tenant will depend on marketing with that person in mind. The proper mixture of offline and online marketing will attract those special qualified renters for your property.
You may have recently inherited a property. Or, possibly your new job is
taking you outside of Hawaii. If so, it’s normal to feel some concern and
anxiety when it comes to renting out your home or condo.
I encourage you to think long-term with your new real estate investment. I’ve worked with rental property owners who expect to pull large sums out of their property in a short period of time. While this can happen it normally takes a number of years to realize a large real estate profit.
In the short-term a good outlook is to make your property attractive to prospective tenants. Step One is to find that first renter and begin receiving monthly rent to cover (or at least offset) your mortgage payment and other expenses.
Great question! Your rental will earn you money in two ways.
Appreciation: While of course no guarantee, real estate has a tendency to increase over the long-term (5-10 years or more).
If your investment appreciates enough over this long-term period it may become possible to sell it later for a profit.
Monthly cash flow: This happens from the rent payments paid by your tenant.
Sometimes this rent payment will cover your complete monthly requirement of mortgage, maintenance costs, property taxes, insurance, utilities, etc.
Sometimes the rent won’t cover all your responsibilities in full. But, don’t forget a third, almost hidden way your property helps your financial situation: tax write-offs (you’ll need to talk with your accountant about this as this all depends on your income and other factors).
While I can’t provide you any tax advice I can tell you that you need to talk with an accountant.
Like any business there are taxes due when a profit is made. This is why you need to discuss your individual situation over with your accountant. You can offset any profit with costs incurred from maintenance, repairs and other costs.
Again, only an accountant can help you sort through your individual tax situation.
This is an important question for rental property owners to ask. Ask yourself whether you’re ready to tackle the duties required to run a successful real estate business.
By the way, whether you own one income property or several you must think of this as running a business. Because that’s what it is.
Can you interact with tenants and keep things emotionally detached? If not, it’s a good time to outsource property management duties to someone who can.
Consider also the time you have to properly advertise, meet with prospective tenants, check to be sure they're qualified to make the rental payments and handle repairs that are needed?
Do you know the ins and outs of Hawaii real estate laws so that you’re always in compliance? Have you reviewed your lease agreements with a qualified real estate attorney? Do you have time to make regular inspections of your property?
If you feel you need to hire an Oahu property manager and would like to sit down to talk through the possibilities give me a call or fill out the form below so I can make contact with you.
Aloha from propertymanageroahu.com
Oahu Properties > Rental Property Owners