According to the census, 30% of Topeka's residents are renters.
If you're thinking of buying rental properties, the rental market in Topeka is a great place to start. There's a great opportunity for investors to scoop up affordable real estate to transform into rentals.
Though it's very doable, managing rental properties isn't as easy as it sounds. Foregoing things like market research and failing to prepare yourself for your landlord duties will set you up for failure. Keep reading, however, and we'll tell you everything you need to know about finding and managing profitable rentals in Topeka.
Importance of Rental Valuations
It's important to research the real estate and rental markets in Topeka before investing in property. When you're looking for your first rental property, you need to figure out how profitable it's going to be - a rental valuation will help you do that.
There are many facets to a rental valuation. First, you can get a good idea of how much you can charge for a rental by looking at what other similar rentals charge. The key is finding a property in the same neighborhood that is a similar size with the same types of amenities.
Set the Right Price
At the same time, you need to think about your own needs. Affordable rental properties will help you appeal to renters, but you also need to make sure you're covering your costs with enough room to make a profit.
One common tactic is to charge around 1% of the total price of the property for monthly rent. The average home price in Topeka is $183,000, so 1% of that would be $1,830 per month.
This is a lot higher than Topeka's average rent price of $800 per month. To get around this, you can convert a single-family home into multiple rental units.
Find Great Tenants
Once you've found the perfect property to turn into a rental, you need to find great tenants. If you have good tenants, managing a rental becomes so much easier.
Start by marketing your rental vacancy with a thorough property listing and plenty of high-quality real estate photos. You can cast an even wider net by using marketing practices like SEO and paid ads.
With good marketing, you should end up with lots of applicants. From here, you need to employ strong tenant screening strategies to find the perfect person to fill your vacancy.
Tenant screening involves looking into the criminal and financial backgrounds of your applicants. A criminal background check will unearth any concerning legal issues, while a credit check will tell you a person's financial stability over time.
Choose a tenant that satisfies all your criteria. Once you've got one, it's your job to keep them happy by attending to their needs and making sure the property remains livable.
Property Management and Rental Properties in Topeka
Now that you know more about finding and managing rental properties in Topeka, you can start your new landlord adventure. You'll soon realize that managing a successful rental can be a lot of work even when you've got great tenants.
If you're feeling overwhelmed by your duties, hiring property management can help. PMI Advisory Group is the top property management company in Topeka, offering a wide range of services, including marketing and tenant screening.
Contact us today to learn more about us.
