The statistics about how Americans save for retirement are startling. According to one study, the average American of retirement age has an annual income of $38,000.
If you want to live on more than that when you retire, you’ll have to either save more of your income or start generating a steady source of secondary income.
Many people fund their retirement by investing in the world of rental leasing. Leasing out a rental property for more than you pay in your monthly mortgage is a great way to generate passive income and shore up your retirement savings.
In the article below, you’ll find a list of the best ways to secure a steady income by investing in real estate. These tips should help you avoid some of the pitfalls that many first-time real estate investors fall for. Keep reading to learn more.
Consider Offering Furnished Units
One way to boost the amount of money you’re able to charge tenants is to offer a furnished unit. Buying nice furnishings for your rental property will cost money upfront, but you can make that money back every month that your tenants pay rent.
That’s possible because you’ll be able to charge more money for rent than a comparable property that isn’t furnished. Furnished units may also appeal to renters who are moving from out-of-state and don’t want to transport their furniture or buy new furniture.
Resist the Temptation to Buy a Fixer-Upper
Whether you’re an experienced real estate investor or you’re buying your first property, you’ve probably considered buying a fixer-upper. Fixer-uppers are usually priced much more competitively than houses that don’t need work done.
The trouble is, it’s difficult to estimate the costs of repairs, which can affect your return on investment. Unless you’re very handy and able to fix up a house yourself or with an investing partner, you’ll have to pay someone for repairs.
Fixer-upper homes may also have hidden flaws that you didn’t notice the first time. It could be months or years before you get the house to a point where it’s in condition to be rented out.
Hire a Property Management Service
A professional property management service will help you market your property, find tenants and make sure your vacancy rate stays low. Going one or two months without a tenant is one of the worst things that can happen to your investment from a cash flow standpoint.
Property management companies can also handle communication with tenants so you don’t have to take time out of your busy schedule.
Reviewing the Top Tips for Rental Leasing
Now that you’ve read through this list of ways to secure a steady income through rental leasing, you’re ready to start finding properties and tenants. Following the advice in this article will help you maximize the amount of money you’re able to bring in every month.
If you’re looking for an experienced partner in Chicago, Illinois that can help you manage the properties in your portfolio, be sure to get in touch with the experts at GC Realty and Development.