I bought my first property! Now what?!
Updated: Mar 28, 2022
Getting started in real estate investing is exciting, but no one ever tells you the full truth of what comes next! Once the papers are signed and keys are handed over, there is still so much to do! Where do you start?
1. Find a tenant. Start with people you know. Do you know anyone that needs a place? Some people don’t want to rent to family, but maybe you have a distant acquaintance that you trust? If not, list the vacancy on a variety of sites including Facebook Marketplace, Craigslist, KSL, etc.
Do you need to conduct interviews? What sort of research should I do on applicants? How do I do that research? All of these are excellent questions. Yes! Conduct interviews, especially if this is your first property. And yes, you need to do some research. At the very least, look up their credit score and call their employer to know if they are dependable. You don’t have to like the person, but you do need to trust them to follow through on their contract.
For more information on how to choose the right tenant, check out our article all about it here!
2. Sign the contract. Be sure to find a contract that protects you and your tenant. The importance of a detailed contract cannot be understated. Be sure there are provisions for damage, subletting, and pets. There should also be a detailed explanation of how and when rent should be collected, and what happens if it is late. One of our favorite free contracts is available through Law Depot.
3. Collect Rent. It sounds obvious, but it can be intimidating to hold people accountable. But since your contract made it clear how rent would be collected you can move forward comfortable. Follow the steps you forecasted and don’t be afraid to be strict.
Remember you got this! Once you get the ball rolling there will be no stopping your winning streak through passive income. We are excited for you! Now if managing your property starts to feel overwhelming, reach out! We offer a full service property management solution to take away all the headache but leave all the reward!
Welcome to the Real Estate Investment Club!