If you're looking for a an easy way to bring in additional monthly income, you might want to consider investing in a rental property. There are many benefits to increasing your monthly cash flow through rental properties. Unlike the stock market, becoming a real estate investor allows you to increase your earnings and have access to your funds each month without having to buy, sell, or trade stock.
Turnkey investment properties allow you to purchase a home that has already been renovated, updated, and inspected and is available for renting. The benefits are endless. Here are our tips on how to make additional income with a rental property.
1. Work with a Professional Real Estate Company and Broker
Working with a professional real estate investment company to find and buy a rental property can save you time and energy, since a real estate broker can help you determine which areas are ideal for rental properties. It’s important to note that some neighborhood homeowners associations prevent buyers from renting homes. An experienced broker can also advise investors on which homes will provide the highest return on investment.
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2. Do Your Research
Do your due diligence before purchasing a rental property by researching area markets and property ratings. Luckily for investors seeking rental properties in the Memphis metro area, the city and its suburban towns have growing economies with plenty of families and young professionals seeking rental properties.
Like any large city, however, there are areas investors tend to shy away from. If you don’t want to invest in hiring a property manager to oversee tenants and properties, it’s best to narrow your search to areas with higher ratings. These areas will also bring in more income for you. Here’s a rundown of the most popular areas in Memphis for rental properties.
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Midtown
Midtown is home to many graduate students and young professionals due to its proximity to The University of Memphis and the Cooper Young arts district. Some of Memphis’ most popular restaurants and amenities are within walking distance of many Midtown homes. From charming bungalows to cozy craftsmans, Midtown offers plenty of affordable rental properties that don’t need many upgrades or renovations.
Downtown
Downtown Memphis has plenty of opportunities for investors seeking rental properties to attract reliable tenants. Dozens of charming lofts and condos are for sale at extremely affordable prices, and just over the bridge from bustling Main Street, Harbor Town offers both condos and homes for young families and empty nesters seeking proximity to downtown amenities with a neighborhood feel. The area even includes its own grocery store, doctor’s offices, and montessori school.
East Memphis
East Memphis is becoming increasingly popular with young families and young professionals seeking proximity to jobs, restaurants, and entertainment venues. Investors will find ample properties with a lot of potential for sale as well as dozens of recently renovated homes at very affordable prices. As more and more eclectic restaurants and entertainment venues open in East Memphis, more and more opportunities to invest in rental properties become available.
Germantown + Collierville
Germantown and Collierville are two of Memphis’ fastest growing suburbs. Residents flock to these areas for their award-winning public and private schools and shopping and dining amenities. Since home values tend to be a tad higher in Germantown and Collierville than in other suburbs, parents and young families are more than willing to consider rental properties in order to meet their budget while living in a community that offers safe, family-friendly activities and amenities.
North Mississippi
North Mississippi, particularly DeSoto County, which borders Memphis directly to the South, is one of the fastest growing areas in the country. Many families have opted to make North Mississippi home due to its high-ranking public schools, proximity to Memphis, and growing list of amenities without the Memphis price tag. This is great news for investors, since families looking to get their families settled before school starts are more likely to utilize rental properties if the growing housing market can’t meet their demands. With plenty of safe, affordable neighborhoods along with ample new construction, DeSoto County is ripe with rental property opportunities.
3. Keep an Open Mind
While investors will certainly find plenty of properties in Memphis that are ready for tenants to move in, many investors have also found success through the process of buying foreclosures, making renovations, and selling or renting the finished property. If you’re willing to spend a little time and effort finding and renovating the right property, you can expect an even bigger return on investment. Even renovating the kitchen and bathrooms or adding new landscaping to the outdoor spaces can increase a property’s value and rental or purchase price.
4. Increase Curb Appeal
Boost your rental property’s value by increasing curb appeal. You don’t have to spend a fortune to make your rental property more appealing to renters. Here are a few ways to add curb appeal at an affordable price.
Paint
Adding a new coat of paint to aged siding or wood finishes can take a home from drab to fab in no time at all. Consider updating the paint in the interior of the home as well. Choose a paint color from the neutral family, as these tend to appeal to more renters and buyers. Adding a coat of fresh paint to bathroom and kitchen cabinets can also update a property without investing a significant amount of time and money.
Spruce up the Front Door
If you only invest in one upgrade, invest in a new front door. This will add value and charm to your rental property. A warm and inviting coat of paint and a seasonal front door wreath or decoration will also add charm.
Update Light Fixtures
Updating light fixtures is one of the easiest ways to add value and update the appearance of your rental property. Make it a priority to upgrade light fixtures in kitchens, dining rooms, bathrooms, and porches.
Clean
A great rental property will fall short of renter expectations if it’s shown with dingy carpets and dirty cabinets and walls. Invest in a cleaning company to do an initial cleaning before and after renters move in and out to ensure your investment gets the most bang for its buck.
Landscaping
Consider hiring a landscaping company to tend flower beds, mow lawns, and update landscaping to add instant curb appeal for renters.
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Are you ready to purchase your Memphis rental property? Contact one of our experienced brokers to get started today. We’ll help you find the perfect rental property to fit your budget and work to get you the best deal possible.
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