Four Things To Consider Before Diving Into Real Estate in Olympia
You must have read about how some real estate moguls started from scratch and grew to be among the richest men in the world. You too can be a successful renting real estate, but you need to understand the essentials of owning and managing rental properties in Olympia.
This business is one that will involve a lot of time and energy. However, if you heed our advice and apply the principles we will teach you here, you will come out very successful in the end.
Purchasing and Developing Rental Properties Olympia
When you want to delve into the real estate sector in Olympia, you will be caught in between three choices. The first is whether to buy raw land and develop the property you want on it, to buy a semi-developed property, or to buy a newly developed property and start managing it.
While all of the options have merit, the first option is usually the best. You can often get raw land very cheap. Even after developing the property in Olympia, you will discover that it will be cheaper than buying a completely developed one. Another reason is that you have the chance to build the rental property to your taste and according to the need of the market in Olympia. You may decide to build a family house, a hotel, a recreational facility, or rent it out as farmland.
But before you buy raw land in Olympia, you must determine what you want to use the land for. This ensures that you will get the appropriate plot – one that fits what you want to do with it. Bear in mind that raw land is mostly seen as a long-term investment. This makes it illiquid, and so, you shouldn’t expect the gains to start rolling in immediately. The lending houses or banks may see it as a speculative investment, and may not be ready to fund development projects.
Therefore, you must budget for a source of funding for the development of the rental property in Olympia before you buy the land. Sometimes, it may not be easy to determine the value of the raw land because of the shape, size, width, and even depth. You must always consider the ups and downs of the location of the raw land, like the drainage system around it, the proximity of utilities, and amenities like roads, sources of water, electricity, and others. You should also consider the weather and climate of the area. For any land you are buying for a rental property in Olympia, ensure that problems like toxic wastes, old wells, septic systems, and leaking underground storage tanks will not arise.
When you must have bought the land for your rental property in Olympia, you should ensure that the development is tailored according to the needs of the people to rent it. This is the most important part of development. You don’t want to develop a property that people will not rent for months or years after building.
Renting Your Olympia Property
If you choose to use the services of an agent, then you may not need much schooling here. But if you prefer to rent out the property by yourself, then you need to understand the points below. You must read and understand the landlord-tenant law and what it says about house maintenance, lease agreements, eviction procedures, security deposits, notices, etc. Other housing regulations that will always come up in the course of your engagement with tenants must also be learned.
You also have to learn how to screen your tenants before you accept them. Know the things that are needed for the screening, the red flags to look for, how to address your tenants, and how to relate with them. Avoid entering into oral lease agreements. Ensure that everything is put into writing and signed. The application form should be completed and must come with references, employer’s contacts, and as much information about the tenants as possible.
You should ensure that your rental properties in Olympia are properly maintained. Keep the property clean and comfortable all the time; just the way you will like it if you are living there. You should also have a budget for issues that may arise from the house.
Managing Properties Olympia
This angle may be more problematic than the other sections. Here, you have to decide whether to hand your property to a professional property management firm in Olympia or to do it yourself. If you choose to manage it, you have to know that it’s never an easy task. The most important aspect is to understand that your rental property in Olympia is your business. It should not be a passive income earner for you; otherwise, you will not manage it properly. Develop the skills and learn how to be a better manager and landlord.
The best approach is for you to start small. Owning and managing many rental properties in Olympia as soon as you start may be too cumbersome for you. You can start with a single-family house and add another when you must have learned the nitty-gritty of the business.
Maintaining Rental Properties Olympia
After buying and developing, maintenance should be one of the most important aspects of having a rental property in Olympia. You don’t want to lose your precious real estate to lack of maintenance.
The tenants do not own the house. So, you don’t expect them to carry out maintenance works on the property. It’s your task to always check for leaks, seal all the cracks on the walls and tile grout, and re-caulk the showers if the need arises. It is also your task to check and upgrade the electrical wiring, take out the bad air filters and replace them with new ones. Repainting your property from time to time, testing of carbon monoxide and smoke detectors, and checking for pests must be done regularly. You should also flush the water heater from time to time, and change the air system filters.
If done right, renting your Olympia property is an effective way to build your income, establish a strong financial investment, and develop the community in a positive way. From acquisition to maintenance and management, and everything in between, Olympic Rental and Landlord Services is here to help you achieve your real estate dreams. Give us a call to learn how we can help.