This article was written by Lucy Reed for Ideal Wealth Grower
The property industry is booming. Even during the pandemic, the property management industry saw marginal growth in the United States. Bloomberg notes that the country is seeing its biggest demand ever for rental properties. This means many investors who’d usually look for fixer-upper properties to flip are considering whether it’s worth renting out those renovated properties instead.Read on for some words of advice from Ideal Wealth Grower about how to make the house-flipping or renting decision.
Remodeling Your Fixer-Upper for More ProfitsThe amount and type of work required to remodel a fixer-upper will depend on the area and the property. Historical or period properties, for example, may need some special care. Make sure any renovations that are performed keep the original look and preserve as many of the property’s historic features as possible to increase the marketability of the property.The Challenges of Being a LandlordDeciding between flipping a property and becoming a landlord requires balancing the financial and practical aspects of those options. Those who choose to flip properties will find it’s difficult to scale their business. The profit potential is limited to the number of properties the investor can flip each year.As a landlord, there’s ongoing revenue from each property. Those who do choose to rent out properties should be aware of the ongoing maintenance the property requires. There may be local regulations relating to building codes to consider. Landlords are responsible to maintain certain parts of the property, and hiring landscape gardeners and property managers is a part of that job. Property managers can make the life of a landlord much more enjoyable because the managers take care of all aspects of the property and the tenants.
Long-Term vs. Vacation RentalsShort-term rentals have attracted a lot of interest in recent years, in part because of the high rates property owners can charge per night and the ease of getting started with rental platforms like Airbnb and VRBO. However, landlords should be aware that the overhead on short-term rentals is very different. Long-term landlords usually don’t pay utilities, for example, while those managing vacation homes have to furnish, maintain, and cover utilities. Another consideration when it comes to the pros and cons of long-term versus short-term rentals is cash flow. Vacation home income is often seasonal.Finally, going one way or another depends significantly on location. In a heavily visited area like Orlando, for instance, a vacation rental can be the better option. Research is an important part of such decisions. Use an online search tool to explore the local market. For instance, if you’re considering an apartment complex in Orlando, FL check out what the competition is charging for rent, as well as what amenities they’re offering renters. This local market in particular is hot, with more than 5,000 apartments currently available.
Home Improvements to ConsiderBoth property flippers and aspiring landlords need to renovate the properties they purchase before marketing them. It’s common for would-be flippers to DIY a lot of the jobs for their first few properties. Landlords who are looking to scale their operations, however, may find hiring contractors helpful.For example, if a house needs a new garden fence, finding a contractor in the local area with lots of positive reviews could speed things up and make the job go more smoothly. The average cost of a new fence averages between $1,580 and $3,418 according to HomeGuide, but the exact costs will depend on the size of the fence, the material used, and the location. Make sure to find a contractor that’s fully licensed and insured and aware of potential issues such as underground utility lines.
Being a Landlord Isn’t EasyBeing a landlord isn’t an easy job, but it’s one that can offer ongoing revenue if it’s done properly and you recruit property managers and other specialists to help. It’s important to choose home improvements that suit the type of property and to consider whether long-term rentals or vacation properties offer the best potential returns.Ideal Wealth Grower gives you the tools and guides you on your journey toward economic independence and the amazing freedom a portfolio of assets and passive income will give you and your family, and build your legacy. Reach out for more info today! (805) 708 6830
The property industry is booming. Even during the pandemic, the property management industry saw marginal growth in the United States. Bloomberg notes that the country is seeing its biggest demand ever for rental properties. This means many investors who’d usually look for fixer-upper properties to flip are considering whether it’s worth renting out those renovated properties instead.Read on for some words of advice from Ideal Wealth Grower about how to make the house-flipping or renting decision.
Remodeling Your Fixer-Upper for More ProfitsThe amount and type of work required to remodel a fixer-upper will depend on the area and the property. Historical or period properties, for example, may need some special care. Make sure any renovations that are performed keep the original look and preserve as many of the property’s historic features as possible to increase the marketability of the property.The Challenges of Being a LandlordDeciding between flipping a property and becoming a landlord requires balancing the financial and practical aspects of those options. Those who choose to flip properties will find it’s difficult to scale their business. The profit potential is limited to the number of properties the investor can flip each year.As a landlord, there’s ongoing revenue from each property. Those who do choose to rent out properties should be aware of the ongoing maintenance the property requires. There may be local regulations relating to building codes to consider. Landlords are responsible to maintain certain parts of the property, and hiring landscape gardeners and property managers is a part of that job. Property managers can make the life of a landlord much more enjoyable because the managers take care of all aspects of the property and the tenants.
Long-Term vs. Vacation RentalsShort-term rentals have attracted a lot of interest in recent years, in part because of the high rates property owners can charge per night and the ease of getting started with rental platforms like Airbnb and VRBO. However, landlords should be aware that the overhead on short-term rentals is very different. Long-term landlords usually don’t pay utilities, for example, while those managing vacation homes have to furnish, maintain, and cover utilities. Another consideration when it comes to the pros and cons of long-term versus short-term rentals is cash flow. Vacation home income is often seasonal.Finally, going one way or another depends significantly on location. In a heavily visited area like Orlando, for instance, a vacation rental can be the better option. Research is an important part of such decisions. Use an online search tool to explore the local market. For instance, if you’re considering an apartment complex in Orlando, FL check out what the competition is charging for rent, as well as what amenities they’re offering renters. This local market in particular is hot, with more than 5,000 apartments currently available.
Home Improvements to ConsiderBoth property flippers and aspiring landlords need to renovate the properties they purchase before marketing them. It’s common for would-be flippers to DIY a lot of the jobs for their first few properties. Landlords who are looking to scale their operations, however, may find hiring contractors helpful.For example, if a house needs a new garden fence, finding a contractor in the local area with lots of positive reviews could speed things up and make the job go more smoothly. The average cost of a new fence averages between $1,580 and $3,418 according to HomeGuide, but the exact costs will depend on the size of the fence, the material used, and the location. Make sure to find a contractor that’s fully licensed and insured and aware of potential issues such as underground utility lines.
Being a Landlord Isn’t EasyBeing a landlord isn’t an easy job, but it’s one that can offer ongoing revenue if it’s done properly and you recruit property managers and other specialists to help. It’s important to choose home improvements that suit the type of property and to consider whether long-term rentals or vacation properties offer the best potential returns.Ideal Wealth Grower gives you the tools and guides you on your journey toward economic independence and the amazing freedom a portfolio of assets and passive income will give you and your family, and build your legacy. Reach out for more info today! (805) 708 6830