The real estate market has presented significant challenges to investors lately. Are things starting to look up? Just last month, we saw a 30% increase in inventory, with over 1,000 properties on the market.
With more properties for sale, it's time to jump into action. However, you don't want to grab the first property you come across when the goal is to build a portfolio of rental properties.
We're here to share the top strategies to find and manage profitable rentals in Prescott, AZ. Read on to unlock our secrets.
Scout Your Location
Before you start hunting for properties, think about neighborhoods through the eyes of a renter. Renters often want to live close to areas where they work, go to school, or seek entertainment. They also want easy access to public transportation.
To get an idea of where to find profitable rental investments, look at existing rental prices. You'll quickly see that you're going to make less money in areas like Juniper Heights than in Diamond Valley or Granite Dells.
Weigh Upfront vs. Maintenance Costs
One of our top rental property tips is to look beyond upfront costs. Sure, you might want to snag that single-family home for $150,000, but how much work does it need?
Make sure you have existing funds to cover any maintenance needed to make the property turnkey. Things like condition are going to play a big role in your rental price, not to mention your long-term expenses.
Pair Up with Great Tenants
Think about who you're going to market your property towards. Your marketing strategy should reflect your demographic, whether you're aiming for families, students, workers, or retirees.
Next, put together your tenant screening strategy, which should include:
- Credit history
- Rental history
- Criminal background history
The better your tenant screening is, the more likely you are to find tenants who pay rent on time and take care of your property. This can also set you up for better tenant retention.
Consider Prescott, AZ Property Management
What if you're more interested in funding (and profiting off of) your rental property investments than in managing them? Real estate can provide passive income as long as you outsource management to reliable professionals.
Property managers can take over all day-to-day functions, from tenant screening and communication to maintenance oversight. They can also help you manage your accounting and build a better budget for property upkeep. Partnering with rental experts is a great way to maximize your profits without the stress.
Buy and Manage Rental Properties with PMI Northern Arizona
Residential real estate in Prescott, AZ is finally on the upswing with more properties hitting the market each day. If you're an investor, now is a great time to jump on opportunities to expand your rental portfolio. With PMI Northern Arizona, you don't have to do it alone.
We've taken the nationally-tested services and technology provided by our parent company and attuned them to our unique needs here in Prescott. As a result, our team can weather any storm. Contact us today for customizable property management.
