Hoping for real estate investing success? Wondering how SFR (single-family residential) properties fit into the picture? Over time, if you make the right decisions, take care of your rental property, and partner with the right Austin property management company, you can ensure that your investment results in impressive returns year after year.
If you’re new to the SFR real estate investing market, you might not know where to begin. Below are three important factors to consider that ensure real estate investing success.
1. Price Matters
When tenants search for properties to rent, they start by focusing on price. Whether they’re conducting the search on their own or doing so with the help of a real estate agent or property management company, there are certain filters they will put in place.
To understand this better, put yourself in the shoes of prospective tenants. If you were searching for a property, what would the process look like?
You’d go online — or look at MLS listings with the help of a real estate professional — and set filters for homes. That would include location, type of home (single family, apartment, condo, etc.), number of bedrooms and bathrooms, and price.
Then, you’d be given a list of properties that met those criteria. If a home is priced even one dollar above the top-end limit you set, you wouldn’t see it on your list.
So, what does this tell you?
You need to price your rental property in line with comparable properties in your area if you want to be competitive. That’s why a good Austin property management company will advise you to do research on these comparable properties (or your property management partner will do this for you) to get a baseline of what they’re charging for rent.
Keep in mind that this research will just produce a baseline. You’ll then use that information to decide whether you could charge more or less, depending on several different factors.
It’s important to also understand the asking price isn’t always equivalent to the actual rent rate. In other words, just because an owner is asking a certain rent for their rental property doesn’t mean they’ll get that once they go through the leasing process.
2. Condition Matters
The condition of your rental property can be a separating factor when prospective tenants are searching for a place to live. If they are looking at two comparable properties, they’re more likely to go with the one that is in a better overall condition.
Condition in this regard doesn’t just refer to whether your property is clean and in good overall shape — though those factors certainly do matter. It also refers to the quality of the materials that you have in your home, such as the flooring, cabinets, appliances, and more.
In fact, our trusted vendor Powerhouse Home & Commercial Services joined us recently for a webinar to discuss the best flooring options for your Austin rental property. Watching that webinar is a great place to start when assessing your options, and will open your eyes to the possibilities of how to maximize your returns in SFR real estate investing.
3. Tenant Quality Matters
A higher-quality tenant results in a higher success rate in SFR real estate investing. And how do you attract a higher-quality tenant? By having a high-quality property.
This is why the above is so important. When you have a rental property that is clean, up-to-date and offers the features and materials that high-quality tenants desire, you’re more likely to attract the right people to it.
High-quality tenants are more apt to pay on time, renew at the end of their lease, and treat your home as if it were their own. All of these factors are essential to creating a positive, long-lasting, sustainable business in SFR real estate investing.
By focusing on attracting the right tenants to your property, you’ll be ensuring you make the right decisions about improving, upkeeping, and pricing your rental property correctly the first time.
Partner with 1836 Property Management
Going it alone in SFR real estate investing is certainly possible, but it can be very challenging. Suppose you’re new to the market or don’t have the time, expertise, and interest to make it your full-time job. In that case, it’s advisable to partner with an experienced Austin property management company that can set you up for long-term success.
1836 Property Management is a company in the Austin region. We provide all of our clients with the next-gen, full-service experience for single-family home investments and rentals.
We utilize our years of experience in the local rental property market as well as cutting-edge technology to approach listing, leasing, and maintaining in innovative ways. By doing so, we ensure your rental property generates consistent, positive ROI.
Contact us today to find out how we can help you become successful in the SFR real estate investing market.
