1 - Listed rent amount misaligned with the market.
Usually leads to prolonged vacancies. Property owners are encouraged to stay abreast of trends in their local market in order to determine the correct price point for their property.
2 - Lack of a robust screening process.
Screening applicants should be an intricate part of any property investor tenant vetting process. ERLIPRO makes it easy for you to complete a throughout credit and background check on applicants for your property.
3 - Lack of ongoing maintenance.
Your investment property is a business and should be treated it as such. Maintenance requests from tenants should be handled in a timely manner. ERLIPRO makes it easy for you to view, manage and respond to all maintenance requests at your convenience while on the go.
Be aware that in general, normal homeowners' insurance does not include the necessary coverage needed to rent out your house. You should consider adding a comprehensive public liability insurance also known as DP3 - Dwelling Property All Risk to your policy. It still gives you the fire coverage you get from your homeowners but adds extended coverage since you will have a tenant living in the house. However, expect some increase in your premium as a result of this additional coverage. We recommend you speak with your insurance carrier prior to renting out your house.
Below are four metrics commonly used by real estate property investors:
INCOME (aka Cash flow) – the amount of money left after substituting all expenses from the monthly rent payment on the property.
APPRECIATION – Arguably, the best benefit of real estate. Even though home prices are cyclical, data suggest that in the long-term, most real estates appreciate in value.
EQUITY BUILD-UP – each month the mortgage is paid via the rent proceeds, the principal on the loan balance is reduced thereby, building you more equity in the property.
TAX SAVINGS – In most cases, expenses for the property are tax deductible. Meaning, you can deduct the mortgage interest, property taxes, insurance, maintenance, depreciation and the management fees during your annual tax filing.