How to Have Success with Real Estate Investment in 2021

At this point, everyone acknowledges that the world will never return to normal after the pandemic. The real estate market has changed as well, with people being isolated and unable to leave their houses for a long time. Along with these drastic changes, the new technologies changed an average tenant’s priorities when choosing a house. It means that an investor seeking to buy a property should take these changes into account.

Here we will list some of these changes, hoping to help a new investor who is looking to buy and rent out a property. The list is by no means comprehensive and should act as a starting point in investors’ research. In the twenty-first century, renting out a property requires thorough research and even some marketing.

Study The Law

It is obvious but cannot and should not be overlooked. Thoroughly study your country’s laws, calculate the amount of taxes you’ll have to pay, and include them in the price when the time comes. Look for standard forms for tenancy contracts or hire a freelance real estate consultant to help you figure things out.

Choosing A Customer

Before looking for a property to buy, we suggest an investor looks at the potential customer. Who would you like to rent the property to? Is your perfect tenant a middle-aged, married man who pays a year in advance or a young couple of freelancers paying monthly? For how long would you like one tenant to live in the property, how much could they pay? Do not hesitate to use the internet: average salaries in different sectors are invaluable for this, as are average rent prices in different areas. Write down the figures, estimate the return on your investment. Does it satisfy you? If it does not - keep researching. This is similar to finding a niche and a target audience for a business, even if you have just one customer.

Choosing a place

After creating your perfect tenant, it is time to look for an apartment. The position often becomes a deciding factor: how good is the infrastructure? Are there public transport routes nearby? Train stations? Remember that the younger your perfect tenant is, the less likely they are to own a car. And if they do, the parking spot is necessary. A park nearby always increases the attractiveness of the property.

However, don’t limit yourself to the current situation. Research the city’s website and see if any projects are going on. If there is a plan to build a new underground station nearby, your property will grow in price once the construction finishes. The same applies to parks, train stations, and public transport. Lastly, check for the internet connection on site. Poor connection is always a disadvantage, especially for young customers.

Improving A Property

You chose a property and are going to buy it, that’s great. Have you considered improving it to make it more attractive? Along with the usual face-lift, we’d suggest modernizing the apartment or a house according to the needs of today’s customers. These improvements are listed in the order of descending returns. Whether to apply them depends on your budget and the type of customer you aim for.

The most important one is a good router with high-speed WiFi. Most occupations and even some leisure activities, such as streaming and online games, require a stable internet connection, so good coverage is crucial. Make sure that the reception is good in the whole place, not just under the router. It is especially important if your tenant is a remote worker or a freelancer.

The second item on our list is lighting: make sure there are enough lights in all rooms. Smart light bulbs are a great way to improve on this. They are not too expensive, durable, and add a nice touch to the interior design.

If you can afford it, improve the appliances and kitchen. Even better, make the home smart. It is always good to have complete control over your house from the smartphone.

Looking For Tenants

Now it’s time to look for your perfect tenant. Many platforms and agencies will gladly list your property for a small fee. Before resorting to these options, ask your friends and colleagues whether they know any “perfect tenants”. Look for people who can work with them. There is a good chance that you can find a person who will rent your property for an honest price within three handshakes. It is old-fashioned, but a working way to find a customer. While you are at it, go through local communities and groups on social media, or even ask around in the neighbourhood. Don’t neglect the analog way.

Conclusion

Finding the perfect tenant will take some time, resources, and a touch of luck. But with persistence comes the reward: a loyal customer, whose needs are met and who is willing to pay the rent, creating a steady passive income stream as a return on your investment.

If you're considering investing in a new condo, browse our now selling pre-con listings.