Everyone dreams of passive incomes. What’s not to love about it? Sleeping in and knowing that money is being added to your bank account in your sleep sounds like a dream come true! Making money with rental incomes in Phoenix is harder than it seems, and being a landlord can be a laborious task. If you want to make a living make real passive incomes using rental properties in Phoenix then read on!
Finding The Right Properties
Finding the right properties can be tricky. The house perfect house will have this following: A great neighborhood, Amenities nearby for tenants, a great location, a great job market, and easy upgrades. A great neighborhood with has curb appeal, well-maintained sidewalks, and street lights. You can find a great location by seeing keeping an eye of the real estate market, see what other rentals are in place, and what their vacancies are. A great location will have easy access to highways, but still feel homey. Amenities are restaurants, coffee shops, and gyms nearby. To earn the most rental income in Phoenix, you need to pick a home that has great features, or a property that can be easily upgraded. You can read more about how to find the best rental properties here.
Deciding On Upgrades
Your rental income in Phoenix will vary greatly depending on what features are already in place for your tenants. If you found a property that checks all the boxes for an amazing rental opportunity, then knowing what upgrades will generate the most cash is the next step. You should replace and upgrade the following to earn the most for your rental: a minor kitchen remodels, a garage door replacement, windows, and if needed a deck. Like most real estate, the kitchen is the most important room in a home. A minor remodel would include updating finishes, a new coat of paint, possibly a new countertop. These fixes will make your kitchen seem more modern, and inviting to a larger array of possible tenants. You can read more about how to remodel your kitchen here!
A garage door is one of the cheapest, and highest return on interest you can complete on your home. It offers covered parking and will be more convenient for your tenants. Siding will boost your curb appeal, and drastically improve the value of the property. New windows will make your property more energy efficient, and more uniform, and will save you, and your tenant’s money! You can even add some security measures, such as locks on bedroom doors, and key codes if you plan on renting multiple bedrooms to tenants. If you make the right upgrades to your rental property, your possibility for higher rental income in Phoenix will rise drastically.
Budgeting for Your Rental Income in Phoenix
Budgeting for your rental properties in Phoenix has never been easier. You can ever keep track of your budget for repairs and your rental on your phone. You can read more about our favorite budgeting apps here! To make the most of your rental you need to know the best rent to charge your tenants. You can use the real estate market, and other rentals to determine the best charges for rent. My using ‘comps’ or comparable properties, you can see how much landlords are charging for similar properties and features. Make sure to see how long these rental properties have been vacant for, if at all, as an empty rental just loses you money in the long haul. Depending on if your property has multiple rooms, you can offer lower rents for more tenants.
Finding the Ideal Tenants
Once you have an amazing property, that is under budget, well funded, and updated the next step is to find tenants. Finding great tenants is hard, but it doesn’t have to be! An old adage is to keep the rent high to get the best people, but in a competitive rental market like Phoenix, that will lose you money in the long run. Quality tenants will know the competitive rates for great rental properties, so the first thing to do is have great amenities to attract those tenants. Hiring a real estate photographer to take photos of your property is great because it makes it easy to share your property and highlight in the best way.
Take advantage of listing sites, and social media and advertise your property high and low. Don’t be afraid to list your renting price, as it will make it easier to deflect bad tenants. By disclosing your rent, only tenants in your price range will apply to learn more about it. You should also interview your possible tenants if possible, and check on your own to see who their previous landlords are and learn more about them. Get a chance to get to know them before renting and you should be able to cancel out any flaky tenants that would be a nightmare to rent to. To make the most of your rental income in Phoenix, You need to have your property full, so make sure to be ahead of the curve for listings and keep your vacancy zero!
Funding and Improving Properties
Home Rehab loans are a great solution for rental property investors who are looking to upgrade their properties to attract more tenants. Home rehab loans are created to help investors upgrade their properties by using hard money loans. Hard money loans are secured by properties, not credit score, so they are easy to approve and even easier to fund! Home Rehab Loans are great options for those looking to further their earning potential on their real estate investments. Learn more about our Home Rehab Loans here.