If you’re interested in a passive income opportunity with long-term promise, you might consider real estate rentals. You can choose from short-term or long-term rentals, and should select and prepare a fitting piece of real estate accordingly.

For example, long-term rentals may target families, while short-term rentals could target traveling business people or vacationers. These resources from Triumph Property Management will help you with either option.

Find a Property That Fits Your Purpose

Select a property according to your target audience, whether that means long-term or short-term renters.

• Research the best cities for real estate investments, keeping in mind your target audience. Vacation-goers may prefer beachfront properties, for example.
• Consider key traits when assessing properties, like crime rates and proximity to public transport.
• Investigate other rental properties in the area to get a sense of potential values and margins.
• Work with a real estate professional to help you find the perfect place.

Take Care of the Logistics of Buying a Property

Real estate is a big investment. Protect your cash by checking these tasks off your to-do list.

• Compile the documents you’ll need for a home loan like pay stubs and tax returns.
• Work with your lender to get pre-approved before making an offer.
• You’ll likely be required to put down 20 percent or more if you’re purchasing a second property.
• Schedule a home inspection to ensure the property doesn’t have any serious defects.
• Negotiate closing costs to try and get the price down.

Prepare the Business Side of Your Rental Property Management

Handling these administrative tasks now will simplify business operations down the line.

• Set up a limited liability company to protect your personal assets in case of litigation.
• Figure out your tax obligations on your rental income.
• If you won’t be managing your property on your own, look for a reputable property management company.

Invest in Your Property to Market It Appropriately

The right marketing will speak to your chosen target audience of renters.

• Make value-enhancing upgrades to the property, such as installing new appliances. Consider the market, too. For example, for a beach property, adding outdoor space like a patio is great.
• Search for a ‘grading company near me’ to find a company to make any necessary leveling changes to the property.
• Boost curb appeal by improving landscaping, cleaning siding, and repainting the front door.
• Take marketing photos that show the house or apartment’s best assets. For instance, if your property is beachfront, make sure to snap plenty of outdoor pics.
• Enlist the help of Triumph Property Management to maximize your rental’s return.

Setting up a rental property isn’t an overnight process. It takes time, effort, and money to get this kind of business off the ground. However, once you’ve put in the initial investment of energy and finances, you’ll enjoy a largely passive income stream. Use the resources above to help you through the startup process.