Rent Sense for RE Investors: Some things don’t change (Part 2)
By Neil Fjellestad and Chris De Marco
FBS Property Management
We have built a healthy San Diego business out of advising independent real estate investors, acquiring and managing rental properties for clients while providing superior housing alternatives for qualified renters. We’ve accomplished daily for longer than four decades. Our rental vacancies change daily. Take a peek today www.fbs-pm.com/rentals
Educate yourself www.RentSenseBlog.com
If you’re a local rental owner now you hold a winning ticket if you want a preferred retirement. A preferred retirement includes a personal residence plus rental properties held without debt and managed by professionals. This financial condition allows you some important lifestyle choices – where you live and how you live.
Here are key factors for successfully turning your rental ownership into the financial bedrock of your retirement prosperity:
- Own well-located homes, condos and apartments maintaining at least a 30% equity position. Pay down loans to achieve this safe equity position as quickly as possible.
- Repair and refurbish the property to maintain physical quality which attracts preferred renters that pay market rent while demanding quality conditions.
- Carefully qualify applications from potential renters and retain quality residents by responding to legitimate service requests via a professional manager that keeps you buffered from the daily drama, personal liability and/or premature sale.
- Keep good records to document expenditures and optimize your tax write-off.
- Protect yourself with adequate insurance and control your liability with professional property management that inspects your property and respects your renters as customers.
- Generally, rental property should be acquired, maintained, improved and held; never sold. Instead, periodically evaluate whether you should refinance existing property and purchase additional property but the end goal is rental ownership free of debt.
- Don’t lose valuable equity to selling expenses. Rather, retire with tax-favored rental income and a reserve for contingencies.