Deciding to buy rental property in Lancaster is a good idea. The real estate market in this region of Pennsylvania offers a lot of opportunities for new investors looking to buy their first property or experienced investors hoping to grow an existing portfolio.
Before you begin to negotiate deals, there are three important things we want to share with you. Follow these tips, and you can be sure you’ll have a successful investment experience.
Make Cost-Effective Improvements to the Property
After you’ve purchased a property and you’re preparing it for the rental market, you may need to make some improvements and upgrades to earn the most rent and attract the best tenants. A lot of investors make the mistake of investing too much money in property rehab.
This is not necessary.
Make the important updates that tenants will require, such as new paint, new flooring, and perhaps even new lighting fixtures or hardware on the sinks and cabinets. These things can make your property look brand new and appealing. A complete renovation is probably unnecessary. You aren’t going to live in the home; tenants are. Granite counters and stainless appliances are probably unnecessary. Tenants want a home in a good location that’s clean, well-maintained, and functional. If you’re providing that, any excessive money spent on cosmetic upgrades would only be wasted.
As you’re searching for the right investment property, look for homes that are ready for tenants to move in. You don’t want to buy a fixer-upper, no matter how appealing the low price might be. The longer it takes to get that property onto the market, the longer you’ll have to wait to earn any rental income.
Set an Accurate and Competitive Rental Price
Get an idea of the property’s rental value before you buy it. This will help you understand how much you’ll earn compared to how much you’ll need to spend.
When it’s ready to be listed on the rental market, make sure the rental value still matches the current market. No one wants to underprice a home; that will simply leave you with less rental income. However, overpricing a home is also dangerous. It will result in a longer vacancy period and chase away well-qualified tenants.
Take a look at what similar properties have recently rented for in your neighborhood, and make sure you’re pricing your property competitively. Losing even a month to vacancy because you are holding out for a higher rent will only cost you more in the long term.
Work with a Professional Lancaster Property Management Company
Smart investors know that professional Lancaster property management will help you earn more on your rental property and spend less. Property managers understand the local Lancaster rental market and stay up to date on industry trends and best practices. You won’t have to worry about making expensive legal mistakes or running into trouble with tenants who aren’t paying rent. A professional property manager can help you market your property strategically, choose a great tenant, and facilitate a smooth leasing and move-in process. You can benefit from online rent collection, recurring accounting statements, and an up-to-date understanding of all landlord and tenant laws.
Please contact us at Fetch Home Management for more information about how to successfully invest in and manage a Lancaster rental property. We’re here to help you fetch the right investment opportunity and have an outstanding rental experience.