It is estimated that 35% of American households now rent their property. That equates to 44.1 million households, yet there is still a huge demand. But do you know how to capitalize on this boom?
One way is to make sure you manage your investments correctly to maximize revenue. Read on as we give our tips for running investment properties in Florida.
1. Get a Landlord Insurance Policy
A landlord insurance policy is a great way to cover yourself for all property management eventualities. Any incidents that occur on the property, such as vandalism, storm damage, and even medical expenses for bodily injuries will be covered. Liability coverage is not included in all policies but you should take the time to find one that does have it.
Your homeowner's insurance won't usually cover residential properties, but will stick to owner-occupied units. Ensure you get the right coverage, not underinsuring but not paying for more than you need.
2. Background Check Tenants
Understandably, you don't want a vacant property. This results in lost revenue, so it makes sense to get people in quickly. However, get the wrong ones and it could cost more than you expected.
Start by doing a check on their credit score. There are plenty of websites online that will let you do this. You should also verify their income with their employer.
Also, be sure to conduct a criminal record check. Only when you are thoroughly certain they are good tenants should you carry on with the process.
3. Make Sure You Have Emergency Funds
As part of your rental property accounting, make sure you have a solid plan that incorporates a bank of emergency funds. A time may come when you have no tenants in the property, or a major repair appears. You need to be able to comfortably cover all eventualities.
If you own the property outright it becomes less important. Any money coming in can be put to one side until you have enough to cover your bases before you start taking it out as profit.
4. Conduct Regular Inspections
Your state will have rules and regulations regarding how and when inspections can be done. However, you should not overlook them. They are essential to check that your tenants are abiding by the rules of the contract.
This also gives you a chance to pick up on any odd maintenance issues. You can use the time to do general repairs and discuss issues with the tenant.
5. Get Rent Correct
Make sure you have performed a good rental analysis to get the right monthly rent amount. Check local listings to see what other properties in the area are renting for. You don't want to price yourself too high as you may end up with a lack of inquiries.
Get Assistance With Investment Properties in Florida
Now you know how to manage investment properties in Florida, try it out for yourself. It takes time and effort but will reap a great financial reward. When you still find yourself struggling, don't be afraid to get help.
Home River Group should be your first stop for all things property in Jacksonville. From finding properties to leasing them, we can be your one-stop shop. Contact us for more information.