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How to Invest in Real Estate & Property Management

How to Invest in Real Estate & Property Management

Real estate is always a good investment, but have you ever considered it as a revenue source? Turning an existing property you own into a rental property or even buying a new one for that purpose is a great way to make some extra money. 

Southeast Michigan offers a promising landscape for real estate investors, with its diverse market and steady demand for rental properties. Whether you’re looking to generate passive income or build long-term wealth, here’s a few things to keep in mind to help you get started.

Top 5 Things To Consider When Getting Into Property Management

  1. Research Southeast Michigan’s Real Estate Market:
    Research the local real estate market to identify neighborhoods with strong rental demand, potential for appreciation, and other favorable investment indicators. The team of experts at Jangia Estates can help with this! We can analyze key indicators such as property prices, rental yields, vacancy rates, and economic trends to help you determine the best area to purchase a rental property (if you don’t already have one).

  2. Understand Legal and Regulatory Requirements:
    Familiarize yourself with the legal and regulatory framework governing real estate investment and property management in Southeast Michigan. Ensure compliance with local zoning laws, landlord-tenant regulations and agreements, property tax policies, and licensing requirements. Consult with legal professionals to navigate complex legal issues and mitigate potential risks.
  3. Advertise Your Opening and Screen Applicants:
    Once you’re ready to take on a tenant, you will need to market the rental property. This could be done through dedicated websites or networking through local real estate agents, property managers, lenders, contractors, and fellow investors. Screening your applicants is a crucial step in the process to ensure you have trustworthy tenants that are going to be respectful of your property.
  4. Determine a Maintenance Plan:
    All homes will need maintenance eventually, so it’s a good idea to be prepared for them when necessary. If your rental property has an issue with the furnace in the middle of the night, will you be going out to check on it yourself? Or will you partner with a different service company to handle it on your behalf? You may want to set up a yearly walk through to check on the home to be able to prevent some of these types of issues before they happen.
  5. Understand Your ROI:
    If you have a vacant property, it may feel like a no-brainer to turn it into a rental to start earning money. But when setting your monthly lease price, don’t forget the time you will have to put in as a landlord. All of the previous items will take a lot effort and attention on your part in order to be successful. There are management companies out there to assist landlords with as much (or as little) as they need. Stephanie Janiga conducted an interview with Todd from Marketplace Homes to learn more about how they can help support property managers; take a look!

So whether you’re interested in D.I.Y. property management or taking on tenants with the help of a company like Marketplace Homes, investing in a rental property can fit any level of time allotment you have available. Remember to stay informed, proactive, and strategic in your investment decisions, and you’ll be well on your way to realizing your real estate investment goals.

HAVE QUESTIONS ABOUT BUYING A PROPERTY?

The experts at Janiga Estates would love to help! Give us a call or email today to get advice on your next investment.

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