With the real estate market in a slump the past few years, investors have been rolling with the punches and discovering new ways to make a profit off of their properties in Maine.
Consumers’ skepticism of homeownership has left many properties vacant and on the market for a number of months. An increasing number of people throughout Maine are renting their home, condominium or apartment and investment property owners and buyers are quickly learning that the best way to make a profit is to rent out their property.
Before investing in a new property, or renting out your existing property, take into account the following tips and investment suggestions:
Looking to Purchase an Investment Property?
Know Your Ownership Time Line
Have a good idea of how long you plan to own a property before you buy it. The longer you plan to own the property, the more you’ll probably need to invest in maintenance, repairs and improvements, but, long term home ownership will most likely appreciate over time. Contact your Maine Mortgage Specialist to determine the best financing and ownership time line for you.
Do Your Research
Before purchasing a new investment property, do your research. It is important to purchase an investment property in a growing area. Cities with a rising employment and population rate are usually the best bets.
Get Your Finances in Line
The better your credit, and the less consumer debt you have, the better your chances are for getting a decent loan. Lenders often require that investment property candidates provide a large down payment and have a stable and strong financial past.
Already Own an Investment Property?
Appeal to Renters
A shabby appearance won’t attract buyers or renters and will only force you to decrease tenant rental fees. Do all of the necessary aesthetic and practical maintenance. Make sure your property is freshly painted, double check that plumbing, wiring and appliances function properly, and that outdoor areas and stairways are safe and look attractive.
Managing the Property
Trying to manage the renters yourself is often times more trouble than it’s worth. If it is difficult to screen renters, upkeep the property and quickly respond to renters’ concerns, you may want to consider paying a professional property-management service to handle your rental.
Know the Rules
Landlord-tenant laws vary from state to state. Be sure you know the owner and landlord’s legal obligations before you put your property up for rent.