Are you a first-time landlord in Topeka, KS? Whether you've bought an investment property or inherited one, you're sitting on a potential goldmine.
While there's been a slight population decline of close to 2%, the city has a median household income of just above $72,000. However, being a landlord isn't a particularly simple venture.
This quick guide will show you how to conduct a rental analysis to understand your property's value. You'll also learn some other tips to succeed as a landlord.
Here's what you must know:
Why Conduct a Rental Analysis
Your first step is to determine how much rental income you can generate from your investment property. You don't have to charge the exact amount that comes from your analysis.
However, your rental pricing should stay within that range. Let's presume your property is valued at $2,000 per month.
Your rental fee shouldn't go beyond $2,500. Remember that the real estate market is full of similar properties. This means that tenants have several options to choose from.
How to Conduct a Rental Analysis
The next step is to understand the rental market trends. This is crucial to help you determine the property's value.
Here's what you'd have to look at:
- Popularity of the neighborhood
- Level of safety
- Amenities, facilities, and other attractions
- Job and education opportunities
- Availability of properties in the neighborhood
You'll also have to look at the median salary of the city. As mentioned earlier, Topeka has a median income of slightly over $72,000. You need to set a price that'll be affordable to the average resident or new resident.
Succeeding as a First-Time Landlord
Now let's wrap things up by looking at the important steps to take as a first-time landlord. It's best to outsource the tenant screening process to a property manager.
This will help you find the ideal tenant. These are tenants that'll be able to afford your rental price. They'll also have a record of being responsible tenants. Property managers focus only on tenants who have built a good reputation.
Another important step is to maintain your property at all times. You should conduct a rental property inspection during vacant and occupied periods.
These inspections will help you assess if you need to make any repairs to your property. These are also necessary to check if your property is fit for human habitation. Rental property inspections hold both landlords and tenants accountable for maintaining the property.
You don't have to do any of these tasks on your own. Whether you need to conduct a rental analysis or a property inspection, you can hire a property management company to assist you.
Open Your Doors
You now understand the importance of a rental analysis and how to build a rental business as a first-time landlord.
Once you've determined the price, you can start seeking tenants. You'll need to ensure that your property is always maintained. You can seek out a property manager to help you.
PMI Advisory Group has over 20 years of experience in the property management industry. We've helped several Topeka landlords and we can help you as well!
