Venturing into real estate is a business endeavor most people have on their entrepreneurial bucket list. And for good reason! Unlike other avenues of investment, there isn’t much guessing involved with what you’ll get out of your property investment. All of those hours spent scouring the housing market and searching for the perfect beachside or city-centered home pay off in the long run if you practice smart buying tactics.
In order to transform a simple New Jersey house for sale into a lucrative source of income, you’ll need to do your share of research and jot down our six tips for buying rental property in the Garden State.
- 1. Location, Location, Location: Follow the Tourists & Students
So you want to buy a rental property, but you just don’t know where to start looking. Tourists and students leave a trail of crumbs (sometimes very visible) to high-traffic areas that take all of the heavy research off your back. Follow that trail and you’ll find the perfect locational scope to begin your search.
Choose a property that is within a walkable distance to public transportation, popular attractions, and various amenities like grocery stores or convenience shops. Proximity is everything to renters, long-term or short-term. The less money they’ll have to spend on transportation, the more they’ll be willing to dish out on an ideally-located property.
- 2. Balance Your Risk
Sometimes turning to real-estate can be a long process that takes time to see any lucrative turnover. So what happens if things don’t turn out the way you initially envisioned? It’s important to weigh the risk as well as the many exciting rewards in the event that things take an alternative turn.
From fluctuating real estate values to destructive tenants, there are a number of risks to be aware of before putting money down or opening up your rental property to new tenant applications. Protect yourself against the many “what if’s” by tracking the metrics of your local New Jersey housing market and taking the time to sift through a credit report for landlords. Give yourself some peace of mind by gearing up with the right information.
- 3. Get advice
Just because it’s your first time buying rental property in New Jersey, it doesn’t mean you have to go through the trial and error process alone. In fact, you could probably spare yourself a great deal of grief by simply asking for advice.
Maybe you have friends or family in real estate, or maybe you turn to a landlord forum—regardless of where you find your source of information, taking advantage of someone else’s knowledge to avoid making any first-timer mistakes could be the defining factor that sets you up for real estate success.
- 4. Find a Property with Outdoor Space
People love being able to access the best of both worlds. And no, we’re not just talking a pristine front lawn. If you can get your hands on a property with a backyard patio space, you may be sitting on a shiny pot of gold. Renters want to be able to spend time outdoors without having to go much further than the confines of their own home. An outdoor space solves this problem.
Be sure to add some alluring finishing touches to the garden or patio that renters won’t be able to resist. Create or install a fire pit for those long summer nights, or spruce the space up with a couple of outdoor chairs that can stand Jersey’s four seasons.
- 5. Accept rental payments online
The digital age has everyone from Millenials to Baby Boomers using their computers and smartphones to take care of day-to-day tasks. Rent is no different. Convenience will always be something renters look for when scouring the market. Make yours stand out by offering online rent payment.
This will also work out for you as a landlord because renters will be able to automate payments to ensure their payments are never late. A total win-win.
6. Prepare for repairs
No house is perfect, no matter how gorgeous the floor-to-ceiling windows are, or how fabulous the marble floor bathrooms are. Repairs are simply part of the job. Whether you’re diving head first into a fix-and-flip property or you’re ready to welcome your first tenant, you can expect regular repairs to come up.
Make no mistake, some of these repairs will be expensive! Set funds aside on a monthly basis for “just in case” events that may require the air conditioning to be completely removed and reinstalled.
Now it’s time to take the plunge! Between becoming a landlord and finding the ideal home to transform into a bountiful rental property, you have your workload ahead of you. Keep these tips in mind as you venture into your real estate dreams!