Andddd the moment you have been waiting for has arrived. You ran the deal analysis, checked the financial boxes, finally figured out the lock box code that contains the keys to your first rental, and are ready to make the offer. Boom! After some negotiating and paperwork, the house is all yours! All of the books and “How To’s” have prepared you for the next steps on converting the home to your first ever rental property. But… those books did not tell you to set up the gas/water before starting the rehab or how to properly list the property to generate leads on potential prospects. That is why we are here to give you tips- the small pieces of advice that matter during the after purchase process and the big keys that can make or break the success of your rental property.
Tip 1: Security Plan
Homes without a security system are 300 times more likely to get broken into. The first part of the property checklist is often overlooked.
It often isn’t the most exciting piece, but you must make sure to create that security plan. Turning on your porch light, installing a safety lock, Simplisafe, and smart lock code are all great places to start and helpful in deterring burglars. The last thing you want to do is open the door and see something missing. Added security benefits your contractors who are working there and also prospect tenants that might be worried about safety. Document the codes and the plan. If you want to turn one rental into a 50 door portfolio, you must have scalability, scalability, scalability….
Tip 2: Rehab Management
Do not let the end rehab date get extended by weeks or months because it often can without precise plans and timeline dates. Depending on the rehab, you may have three contractors working at different times and coordinating the finish dates, materials used, and billing is crucial. Connecting back to Tip 1, there is often a higher risk of theft if contractors are not there consistently working on the rehab. The importance of choosing quality contractors and vendors helps beef up the security and keep everyone accountable on timelines.
Listen to BiggerPockets Episode 399, “Solving the Investor/Contractor” Relationship for more insight on building strong relationships with contractors.
Tip 3: Staging
Homes that are staged prior to being placed on the market, lease, on average, around 73 percent faster than similar, un-staged homes. No prospect wants to walk into a home that has no vision for the space they could potentially be living in. Staging not only shows off the important features of the home, it can hide the flows of awkward spaces. If a prospect doesn’t have a creative eye, walking through a staged home helps them see the potential of what the space could offer them. Staging will help immensely with the way the house is photographed for listing. At the very least, a staged home will stir creativity in your future tenant.