Investing in real estate is one of the best ways to put your extra money to good use. While it may require a huge amount, a lot of people consider the benefits of investing in real estate, especially on rental property.

When purchasing investment property especially on an established rental property, the investor is always faced with a number of possibilities that can either provide opportunities or challenges such as the property is vacant or with tenants still occupying the area and are paying rent.

If the property is vacant, the first thing an investor does is to look for a suitable tenant to generate revenues that would help shoulder the cost for property expenses. And if the property is managed by a property manager, it is also best to consider measuring and reviewing their performance to see if they are a good fit for your rental venture.

If the property is occupied or leased, it is vital to set proper expectations as the new landlord and ensure they are paying reasonable market rates and whether the current property management is able to provide the level of service based on your standards as the property owner.

Always side with facts and evidence rather than myths

There are quite a number of rental property income myths that can cause you to lose focus or steer your rental property investment in the wrong direction, therefore it is crucial to managing your rental property on quantifiable and real data other than myths.

For instance, some real estate agents follow a traditional rule which claims that for every $200,000 you invest in a rental property you expect to earn around $200 a week. Suggestively, when you make a $600,000 investment to buy a rental property, you stand to earn around $600 a week.

Unfortunately, this is sheer nonsense because in reality, the real estate market works on different sets of rules and there are a lot of factors that come into play when dictating income opportunities and gains, which may not or may not align with the investor’s goals or expectations.

It is better to always work smart by doing your research related to your property’s income-generating capacity, property appraisals, value, and the locality’s level of economic activity.

Assessing your property’s rental income value

To come up with your own accurate property valuation, comparing rates for similar rental properties in your area can be a good way to start. Look for a rental property that is similar to yours and you may be able to come up with a reasonable yet competitive rental rate that you can be confident with.

Marketing your rental property

Marketing is one of the best ways to expose your rental property to the market. Make sure to highlight the positives of your property to attract potential tenants. It will also give you an idea of how the market would respond to your property offerings.

Take advantage of social media to promote your rental property listing and take advantage of the various online platforms to reach out to your targeted and extended audience.

The sooner you get to have your tenants, the sooner you also get to benefit from your rental returns.