Salt Lake City is a lucrative hub for real estate investing. You have your pick of everything from vacation rentals to residential homes.
All successful real estate investors start with a plan.
Clarify your goals for investing. How much income do you want to generate for your portfolio? How much capital will you need to get there?
Every business strategy begins with the right questions.
Follow these steps to start building a strong real estate portfolio.
Estimate Your Real Estate Expenses
Start by calculating all of your expenses. There are many expenses beyond your first property purchase.
First, you'll need to hire a real estate agent to find ideal properties for your goals. Agents require multiple fees. However, an experienced agent can negotiate the highest price possible to cover even more expenses.
Here are several more expenses to consider:
- Real estate marketing
- tenant procurement
- Property maintenance
- Rent collection
- Listings
- General property management
Factor the above services into your budget before presenting your plan to a financial institution for capital.
Work With Trusted Real Estate Investing Experts
You can save money by partnering with a property management company that handles every responsibility, from lease negotiations to property marketing.
Take Utah Property Management Solutions, for example. This team of experts offers a full-service experience, keeping all of your real estate investing activities in one convenient hub.
One of the most important aspects of a property manager's job is tenant procurement. A responsible long-term tenant is vital for real estate income. The same philosophy applies to short-term vacation renters.
Great tenants drastically minimize property damage, conflicts, and losses from turnover. Constantly marketing the same property adds up.
You have to pay for the following after every leasing period:
- Tenant applications
- Listing services
- Marketing (traditional and digital)
- Real estate agent fees
- Repairs and damages
- Tenant screening
- Background checks
However, upgrading your properties is an expense you shouldn't avoid. Periodic upgrades result in more lease renewals.
Negotiate More Lease Renewals
Upgrading properties more frequently is an important lease renewal strategy. You can deliver even more impactful upgrades by soliciting feedback from tenants.
Most tenants want kitchen upgrades like new microwaves, countertops, refrigerators, and more appliances. You can also gift loyal tenants with discounted rent prices for the first month of their lease.
Vacation rental owners can be even more creative.
Include "welcome" gift baskets in your rental packages. Gift baskets may include gear perfect for Salt Lake City winters, like mittens, coffee mugs, ear mugs, and knitted hats. You can also create summer gift baskets for renters complete with sunblock, sunglasses, and brochures of things to do.
Mention these perks in your real estate listing descriptions to generate more interest in your properties. You may need to invest more into marketing your first property to get your portfolio off the ground.
Start Building Your Real Estate Portfolio
With the right strategy, you could make real estate investing your new career. Remember to create a solid business plan, partner with a property management company, and work to get lease renewals.
Utah Property Management Solutions knows the ins and outs of successful real estate investing. Let us help you build a strong portfolio from the start.
Contact us to get started!
