In 2023, having multiple income streams is the best way to get a leg up. Have you considered a rental property? It comes with its challenges, but once you're up and running, it can be a great way to make some extra income. Here are three questions to ask yourself to find out if owning a rental property is right for you.

1. Are you charging the right price?

It is important to know if the price you are setting for rent is not only competitive and reasonable for the rental market, but also beneficial for your wallet. The rent price should cover property expenses such as utilities and maintenance while still enabling you to cover the mortgage and make a profit. Rent prices should also consider the location of the property and the selling features of the space.

1. Is your rental property appealing for renters?

There are several things you can do to increase the appeal of your property to potential renters. Having a well-maintained property close to local amenities is a great place to start. Choose a rental property with a great location that renters would be eager to live in. In addition, having a fully furnished space can make moving in easier and more convenient for new renters. If you are not sure whether to furnish your property, consider who your ideal renter would be and whether having a furnished space would best suit their needs. 

1. Do you have a thorough rental agreement?

Rental agreements are not one-size-fits-all. You have to take into account the specifics of your home and customize the agreement to it. Will your renter have access to all amenities at all times, or should you stipulate access terms? One example is usage of the backyard barbecue if you have one, or the washer and dryer. Make the document as clear as possible to make your new life as a landlord as easy as can be. 

If you think owning a rental property is the right option for you, but don’t know where to start, call me at 780-819-0978!