Five Factors to Consider When Acquiring, Owning and Leasing Single-Family Home Rentals

1.  Location – Wow, that’s not so revealing!  Perhaps not, but not everyone follows this basic and critical component to successfully owning and managing a single-family home.  Interestingly, this factor forgives many sins against the other critical factors, although relying on it alone is risky business.
2. Price Range –  This refers to not just the rental price range but also the property value range.  Be aware that in general the lower the rent the higher the risk and the higher the rent the lower the rental demand.  There is a sweet spot which balances each opposing component and knowing what it is can dramatically increase success with owning rentals.
3. Condition –  Keep in mind that the best renters care most about the condition of the property at move-in.  The reverse is also true.  So if you wish to attract the worst renters, skip this critical factor and roll the dice!
4. Marketing – Nationally the rental market has been very strong for the last ten years or so making everyone feel like a genius when it comes to renter marketing.  It’s analogous to how one feels about their stock-picking savvy during a bull market.  Well, when the rental market slows and it certainly will, marketing becomes more critical.  Knowing how to market when the renter pool chips are down is key.
5. Resident Screening – While the other factors do a great job in getting good renters to apply, how do you fairly and legally evaluate the renter worthiness of each applicant?  The answer to this question may make or break your real estate investment.

Identifying these five critical factors when owning and leasing single-family rentals is the first step.  The next step is delving into the details of each and knowing the tricks of the trade.  Future posts will in fact lay out detailed tips for covering each factor.  Stay tuned!

After Five Years of Sitting on My Hands, I’m back.

After setting up this blog five years ago, I now intend to finally start making regular posts to it relating primarily to real estate property management.  My plan is to share information, ideas, practices and observations about the property management industry with a focus on residential single-family home rental issues, but I will also include posts about other property management and real estate topics.  It is also my intent to occasionally throw in comments, information and perhaps questions about my other interests including the nerdy ones.  Sit back and hang on since our ride together will take us to unexpected places!

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