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The Ultimate First-Time Landlord Guide

Home River Chicago - Tuesday, June 7, 2022
Property Management Blog

No matter how much attention goes to crypto, real estate is still one of the best investments you can make today. That's why there are over 22 million independent landlords in the US, and that number is still growing!

However, there are some important things to know if you want to be successful in your real estate investment. Here's a first-time landlord guide to help you get the most out of your investment!

1. Choose the Right Property

A first-time landlord can have their investment destroyed by choosing the wrong property. Buying a fixer-upper is fine as long as you know exactly how much work needs to go into it, and if there isn't any major structural damage. Always get a thorough inspection before buying.

Looking for homes with popular amenities on the property can also help with finding tenants. Ample parking, outdoor spaces, newer appliances, and more can help with finding the right tenants and better rent prices!

Also, you want to choose the right location. Stores and other amenities may come and go, so find something permanent to help you find tenants and keep the resale value high. Schools, downtown areas, access to highways, and public transportation stops are all great amenities for a rental property.

2. Find the Right Tenants

Tenant eviction isn't good for anyone. You'll lose months of rental income and have to pay for all of the damage they caused. Unfortunately, the only way to avoid this is by choosing the right tenants.

The property itself, the location, and the tenants are the three biggest risk factors when it comes to investing in a rental property. The only resolutions for them are preemptive, so do your diligence. This includes credit, criminal, and rental history, as well as income verification!

3. Don't Forget the Lease Agreement

Another important factor for securing your investment is having an airtight lease agreement with your tenants. Consult with an experienced attorney and develop an agreement that works for all parties before taking on any new tenants.

4. Set a Budget

Don't go overboard with spending, especially in the early days of your investment. Set the first-year budget ahead of time after the down payment and closing costs, and stick to it as closely as possible!

5. Choose the Right Property Management Company

Finally, if you want to develop the right lease agreement, maintain the property, manage the budget, and find the right tenants, then you'll need the right management company. With a property manager, you can have all of the work taken off your back for just a small portion of your rental income. Also, you can rest assured that your investment is being managed by experienced professionals!

Put This First-Time Landlord Guide to Use

Now that you have a helpful first-time landlord guide handy, put it to use and do the right thing for your investment today. Real estate is extremely profitable if you have the right tools for the trade, so find the right team for your needs today!

Stay up to date with our latest real estate news and feel free to contact us with any questions or for help with your investment!