Houston real estate – We have seen a lot of investors succeed in the Houston rental market, and we’ve also seen a lot of investors fail. In our experience, those who succeed do so because they’re willing to treat their Houston investment property like a business. If you’re renting out a home you once lived in or you have strong emotional ties to the property, it can be difficult to create a sense of space and distance between you and the home. But, it’s essential.
There are a few things you can do to make sure you’re earning as much as possible on your investment property and treating it like the small business it is. Here are the top five things we recommend.
Access Reliable Data
Houston real estate – Before you buy, sell, or rent out a property, you need to know your numbers. If you want to treat the acquisition of a rental property as a business, you have to let data and information lead the way instead of emotions and instinct.
For example, forget purchasing an investment property that you want to buy because you’d like living there yourself. That’s not nearly as important as buying based on expected rental value and ROI. You have to be willing to take a clear and objective look at your income, expenses, and investment goals in order to have a profitable and successful rental experience.
Implement Consistent Systems
Leasing and managing a Houston rental property can be catastrophic without a set of systems and processes in place. Things can get quickly disorganized, you can lose track of necessary maintenance, and if you’re not treating every tenant consistently, you could be accused of discrimination. Make sure you have a procedure for marketing, screening, leasing, inspections, rent collection, lease enforcement, communication, security deposits – the list goes on.
Part of treating your property like a business is implementing business systems. Put together the policies that will determine how things work, and then follow them every time. Review them from time to time to make sure they’re still working for you. If they’re not, make the necessary adjustments.
Be Willing to Upgrade and Improve
Even if your property is fairly new and in excellent condition, you need to keep up with the Houston rental market. Pay attention to what tenants are looking for, and be prepared to meet the demand. This may mean upgrading to energy-efficient appliances when yours start to deteriorate. Many tenants want security systems and video doorbells. These improvements don’t have to be expensive; you can make cost-effective updates to ensure your property is competitive on the market. It’s part of doing business and treating the home like a business.
Know the State and Federal Laws
Running a business comes with risk. One of the ways to reduce that risk is by educating yourself on the laws, rules, and regulations that pertain to renting out a property. As a Houston landlord, you’ll need to know the Texas Property Code. There are specific things you have to do to ensure your property is habitable and ready for the rental market. You’ll also need to understand and comply with fair housing laws. Stay up to date on all the changes in local, state, and federal laws.
Work with a Houston Property Management Company
Anyone who runs a business surrounds themselves with smart, competent partners who can help them succeed. You should do the same. Don’t try to do everything yourself; it’s an excellent way to get frustrated and fail. Make sure you have a good team of asset managers, brokers and lenders, insurance experts, and legal authorities when you’re renting out property. You need a team of vendors as well. Surround yourself with experts so you know exactly who to contact for help and support.
Houston real estate – We would love to work with you on meeting your Houston investment goals and treating your rental property like a successful small business. Contact us at HNB Realty.