If you’re investing in Albuquerque real estate for the first time, you’re on the right path towards some great cash flow in the short term and impressive returns in the long term. This is an outstanding market in which to own rental property, and signs seem to indicate that it’s an economy and a rental market that’s only growing stronger.
While investing is a great idea in theory, it also takes a lot of work.
Renting out a property comes with more than a few challenges, headaches, and liabilities. If you want to make money on your rental property, you have to make good decisions. You have to surround yourself with experts.
Today, we want to share some tips we have for first-time investors so you don’t make the expensive mistakes that many other property owners have made before you.
Price Your Albuquerque Rental Property Correctly
New investors are often confused about how to price their rental property. You probably have an idea about what you’d like your property to earn every month, but the rental price is really market-driven. It doesn’t matter how much cash flow you’re after or what you’ll need to make your mortgage and tax payments.
Evaluate the market thoroughly and check the prices for competing properties that are similar to yours. Talk to professional Albuquerque property managers who can share some data on what homes similar to yours in your neighborhood are currently renting for.
Smart investors do this before they even buy the property. Hopefully, you’re already aware of what your property will likely earn. Remember that vacancy is more expensive than anything else in real estate. So, don’t overprice your property.
Make Rental Property Maintenance a Priority
Make sure that routine and emergency maintenance issues are a priority for you and your tenants. Train your residents to report repair needs immediately. Any deferred maintenance will only damage your home and drag down its value. It will also create frustrated tenants who feel like their landlord isn’t taking care of their responsibilities. When a tenant makes a maintenance request, respond to it right away, or at least let the tenants know when you’ll be able to take care of the problem.
Handling problems while they’re small will save you money and avoid headaches. In our years of property management in Albuquerque, we have not once seen a maintenance issue become easier or cheaper with time.
Invest in Professional Albuquerque Property Management
Unless you have the time, knowledge, and experience to manage an income-producing property on your own, hire a professional Albuquerque property manager. You need someone who knows the local market and understands the property management industry. Find a company that can accurately price the home, market it, and screen for highly qualified tenants.
If this is your first investment property, you don’t know how easy it is to make an expensive mistake. These errors are almost always unintentional, but they’re also avoidable.
Look for a management company that has good relationships with local vendors and has a reputation for helping owners earn more and spend less on their investment. A local management company will also understand all the laws, requirements, and best practices in Albuquerque property management. You need local expertise when it comes to lease agreements, code compliance, and reporting.
We’re here to help. Contact our team at Bruni/Karr Rental & Management Agency, and we’ll help you navigate your first investment experience.