Renting out a property can be a great way to make extra money. However, the process of buying a second property and finding tenants can be difficult and confusing. Here are some tips for what time of year you should buy a property and how to navigate through the process of renting a house.
Buy Property in Fall or Winter
When considering purchasing a property, the time of year that you buy the property can have a large impact on how much you pay. Most families prefer to move during the summer, so parents do not have to pull their children out of school in the middle of the year. This causes more houses to be on the market during the spring and summer. While it may be more convenient to buy a home during the summer, you can save a significant amount of money if you buy during the fall or winter.
While October is the best month to buy property on average, all of fall and winter tend to be advantageous times to purchase property. Since 2000, RealtyTrac has analyzed more than 32 million sales of single family homes. From their research, they have found that on average buyers have gotten the best deals in October. Business Insider explains that housing prices are lower during this time because there are fewer buyers, so sellers are more willing to settle on lower prices. It tends to be more difficult for homebuyers to search for a new house during the fall and winter due to colder temperatures, less sunlight in the evening, and the start of the school year. While there are not as many housing options during the fall and winter, you are more likely find a better deal during these seasons.
Remember These Tips When Purchasing a Property That You Plan on Renting Out
1) Thoroughly Explore the Property to Discover Any Problems
When considering purchasing a property, you want to check for potential problems. Make sure to check if the toilets flush properly. Check faucets and shower heads for adequate water pressure. Make sure the heating and air-conditioning work. Also, make sure to smell for foul odors to check for telltale signs of mold or a pest infestation. You should also consider hiring a licensed home inspector to help find any issues that could end up becoming expensive.
2) Consider the Expenses of Remodeling
Many states have strict requirements for rental properties that you need to meet before you can start renting. If you purchase an old or damaged home, you will spend a significant amount of time and money before the home can be rented. It can cost you thousands of dollars to fix damage to the foundation, plumbing, or wiring. You might even need to make repairs to a property in good condition to get it up to code.
3) Have Questions Prepared
Make sure to ask questions to sellers and their agents including the ages of the windows, roof, water heater, and heating system. Some other good questions include how much does the homeowner insurance and utilities cost. Also, if the house has had recent renovations, make sure the current owners have building permits for all projects.
4) Get a Property Manager
If you plan on renting out a property, looking for the right tenants can be time-consuming. However, property managers from companies such as Mesa Property Management can help you find the perfect tenants at an affordable price. Mesa Property Management also has a team of handymen that you can call for urgent repairs to your property.
5) Decide Who Will Take Care of the Yard
A nice yard can boost your house’s property value. However, maintaining yards are a lot of work. If you are considering buying a property with a large yard, decide if you will be managing the yard or if you will hire gardeners.
6) Determine How Long You Plan to Own this Property
If you are a short-term buyer who is only planning on renting out the property until the housing market increases, you should consider whether the property is a good investment. If the property is in a good location, you will be able to sell it easier at a higher price.
Renting out a property can be a great way to make money. Now that you know the best times to buy property and have read through these tips, you can decide whether purchasing and renting out a property is right for you.