If you’re buying a Las Vegas investment property for the first time – congratulations. Owning and renting out real estate is an excellent way to earn consistent rental income and to set yourself up for financial gain in the long term.
But, you have to do it right. It’s easy to make an expensive mistake, even for experienced real estate investors.
Here are seven key points you should consider before you invest.
1. Establish Your Investment Goals
With the market moving as quickly as it is, you may be tempted to jump in and buy the first thing you can find.
Instead, be deliberate and intentional. Every good investment experience starts with investment goals. Why are you interested in buying property? You need to know what you’re hoping to accomplish before you start buying real estate.
2. The Market is Competitive
We weren’t sure what the market was going to look like during and after the COVID pandemic, but here we are – in a strong and competitive market where investors are moving quickly and not afraid to make cash offers on homes sight unseen. This does not mean you should make rash decisions or abandon your investment goals. However, you need to know that you’re up against some savvy buyers and you have to know how to navigate the best opportunities.
3. Know Your Numbers
One way to keep yourself competitive in this market is to know your own financial strengths. Make sure you’ve spent some time running your numbers and doing your math. You’ll need to know how much you’re willing to spend, what you’re willing to leverage, and how you will know you’re earning the ROI that you want.
4. Price Your Las Vegas Rental Property Correctly
Once you’ve closed the deal and you’re ready to rent out your property, make sure you’ve established a correct rental value. This is market-driven. Evaluate the market thoroughly and check the prices for competing properties that are similar to yours.
Smart investors do this before they even buy the property. Hopefully, you’re already aware of what your property will likely earn. Remember that vacancy is more expensive than anything else in real estate. So, don’t overprice your property.
5. Rental Property Maintenance is Not Optional
Make sure that routine and emergency maintenance issues are a priority for you. Any deferred maintenance will only damage your home and drag down its value. It will also create frustrated tenants who feel like their landlord isn’t taking care of their responsibilities.
When a tenant makes a maintenance request, respond to it right away, or at least let the tenants know when you’ll be able to take care of the problem.
6. Understand State and Federal Rental Laws
Fair housing laws can be pretty complex, and they’re always changing. You also need to know how to handle rental increases, lease agreements, and security deposits. There are specific state and federal laws that dictate how you market your home, screen your tenants, and deal with accommodations such as service and companion animals. Educate yourself on the legal requirements of renting out a property.
7. Work with a Las Vegas Property Manager
Unless you have the time, knowledge, and experience to manage an income-producing property on your own, hire a professional Las Vegas property manager. You need someone who knows the local market and understands the property management industry. Find a company that can accurately price the home, market it, and screen for highly qualified tenants.
Hire a good management company and then get out of the way. Leave them to handle the day-to-day issues at your rental home while you spend your time looking for the next best investment.
If you’re thinking about investing in Las Vegas real estate, we’d love to talk with you. Contact us at Strawberry Realty – Property Management.