Purchasing a rental property in York, PA is a big investment, but one that can truly pay off. Do your research and take your time to find the right property. We’ve compiled our best tips to help you in the process of purchasing a successful rental property in York, PA.
Tips for Purchasing a Rental Property in York, PA
Network and Join an Association
As a new landlord (or soon-to-be), you may find yourself overwhelmed with how much there is to learn. Joining a local property management association will not only help you learn and grow as a property manager but will also help you develop a network of experienced property management professionals who can assist you.
Know the Property Value
When choosing properties to look at for purchase, be sure to understand property value. Choose properties in areas that are expected to appreciate in value. To save time and money, consider searching for “rent ready” properties that don’t require too much work before they’re rentable.
Have a Reliable Real Estate Agent
Always do your research and ask others in the field (another reason to join an association!) about real estate agents. Find a reliable agent and use them to your advantage to help you purchase the perfect rental property. Your real estate agent may also be able to help you find tenants when you’re ready to market your property. That’s why it’s imperative to spend time searching for the best fit.
Know your Financial Situation & Line Up Financing Early
Analyze your finances ahead of time and know the top of your budget for purchasing. Do the math on property value plus the rental rate of competition properties nearby. Then, reach out to a loan company and be ready to finance as soon as the right property is located.
Cut Costs When Possible
We’re not suggesting to cut corners and be cheap in preparing your rental property, but do be cost-effective where you can. Use our suggested formula above and don’t purchase a property that is going to costly on the back end to fix, clean, and so on.
Start with Single-Family Properties
Single-family homes are a great way to get your feet wet. Start with a home or townhome to rent to a single individual, family or roommates. Once you’re comfortable in your new role as a landlord, you can consider a multi-family property. However, we always recommend hiring a professional property management team once you “level up”. Any multi-unit property is going to be lots of work, so it’s important to have knowledgeable staff to lease the units and manage the property.
Have Marketing Ready to Go
Have a marketing strategy ready to implement once the financing goes through and the property is ready to rent. The more in-depth your marketing plan is (including a budget), the quicker you’ll be ready to get the word out about your rental property.
Have Insurance and an Emergency Fund
Insurance is a given, but make sure it is up and running the moment the property becomes yours. Don’t let this linger! Have an emergency fund in place as well. Insurance has deductibles and may not cover everything. It’s better to be safe than sorry.
Hire a York Property Management Company
The best thing you can do is hire a York property management company to help with all of your property-related needs. No matter how long you’ve been in the industry, there’s a lot to learn and rules and regulations are constantly changing. Having a company of trained professionals behind you will help you rent and manage the property smoothly.
Next Steps
After you’ve done your research, secured financing, and signed the title paperwork, it’s time to get the property rented! Here are some next steps to take and things to keep in mind.
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Is the property rent ready? If not, make sure it is before marketing.
There will be a certified inspection of the property during the financing process of your property purchase. Every item on the inspection list should be fixed and documented before moving on to renting. In addition, get the unit deep cleaned and fix any noticeable damages before it goes on the market.
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Market the property and hold showings
If you listened above, you have a marketing strategy already! Implement the strategy and start scheduling showings. Using a professional real estate or leasing agent for the showings will optimize the process and get the property rented faster.
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Screen prospects
Screen all prospects to check for rental history, past evictions, proof of income and any criminal record. Having a tenant screening process in place is a must. It is the only way to ensure the tenant will be able to pay the rent and doesn’t have a history of repeated delinquency.
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Have a written lease ready to sign
Have a professional and legally binding lease ready to use when a qualified tenant is secured.
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Make rent payments easy and available online
Finally, we advise that you make rent payments as easy as possible for tenants. Set up an online payment system for ease and convenience — this is no longer a luxury, but a must!
If you need assistance finding a rental property, have recently purchased a property, or you’re looking to upgrade your property management, reach out to Bay Property Management Group York, PA. We can assist with any and all steps of the leasing and management process!
