Last year, the Grand Rapids real estate market was ranked one of the hottest in the nation. For many locals, this marked the long-awaited moment to become a real estate investor.
If you're one of the lucky ones who snatched up a great property, you're probably wondering what to do next. As it turns out, owning a rental property doesn't get less complicated once the contracts are signed and the keys are in your hand!
PMI West Michigan is here to help. Read on for our quick but handy guide to getting your new Grand Rapids real estate investment on the rental market.
Set Your Rental Price
Grand Rapids has a diverse rental market, meaning that there is no one-size-fits-all price. Rental prices vary based on:
- Types of properties (e.g., apartments vs. single-family homes)
- Size (e.g., number of beds and baths)
- Amenities (e.g., in-unit laundry, dishwasher, central air, etc.)
- Condition
Perhaps one of the biggest factors that will impact how much you can charge for rent is location. To compete with nearby rentals, you need to set a rental price that reflects the average in your neighborhood.
Market Your Rental Property
Once you've set your rental price, it's time to put your property in sight of potential renters. A simple Craigslist ad isn't going to do it. Consider using trusted rental listing services, both national (like Apartments.com) and local (like PMI West Michigan).
Your listing should include high-quality photos and a thorough description of the property and amenities. Because your applicant pool may include people who are new to the area, make sure to list neighborhood attractions too.
Create a Long-Term Management Plan
A lot needs to be done on a rolling basis to maintain a rental property. This includes:
- Rent collection
- Property inspections
- Preventative and routine maintenance
- Emergency maintenance
- Accounting
- Marketing
Some real estate investors are happy to take on this role, but others simply want to build an investment portfolio to yield passive income. If you don't want to tackle the day-to-day responsibilities, you'll need to outsource your rental management in part or in full.
Screen Tenants
With the right marketing, you'll start to receive applications from potential renters. Even in a tight rental market, we don't recommend accepting the first one to come along without screening them first.
A thorough tenant screening process involves credit and background checks, income verification, and rental history assessment. When you find a great tenant, you reduce the risk of late rent payments and eviction while upping your chances of securing a lease renewal at the end of the year.
New Real Estate Investor? Partner with PMI West Michigan
Grand Rapids real estate is primed for portfolio building, but your initial investment won't do the heavy lifting. Whether you're a new or experienced real estate investor, turn to the company that can maximize profits.
PMI West Michigan offers both turnkey and customizable rental property services. We use our own proprietary technology combined with a tenant-centered approach to ensure client and tenant satisfaction. Contact us today to learn more about how we can help.
