Investing in real estate is a smart and lucrative way to make money, but it's not a one-size-fits-all endeavor. According to one recent study, approximately 79 percent of Americans say they would consider a rent-to-own agreement.
If you're a real estate investor in the Denver, CO area, it's vital to know what the term for rent by owner means.
Read on to learn more about this option and what it can do for your bottom line.
What is FRBO?
The anacronym FRBO is short for "for rent by owner" and refers to any rental property that is rented to tenants directly from the property owner. Unlike a typical apartment complex or places rented by a property management company, FRBO listings are handled by the owners themselves.
A private landlord rental property provides you with more control and independence. It also allows you to vet your tenants yourself, determine the monthly rent price, and handle repairs and maintenance yourself.
But before you list an FBRO property as a real estate investor, there are a few things to keep in mind. Following these steps will ensure that your rental listing is a success.
For Rent By Owner: Steps to Follow
Renting a property is a complex process, but there are some basic steps all investors and owners should follow. First, make sure that your unit is prepped and ready to be listed on the marketplace. You can add a fresh coat of paint, hire a professional cleaning service, or invest in upgrades.
When the property is ready, it's time to list your unit. Start by taking high-quality photos and providing a thorough description. The description should include the size, location, and how many bedrooms and bathrooms it has.
List your property on as many platforms and publications as possible and include your contact information. Remember that you'll have to vet potential tenants yourself, so make sure you confirm their employer, credit, and other crucial facts before you decide.
Finally, you'll need to draw up the lease for your new tenant. Always consult with a legal or real estate professional to ensure that the lease is thorough and contains the necessary language.
Consider a Property Management Company
Even if you list and rent your property yourself, using a professional real estate management company is a great asset. These companies can help you navigate the complex issues that go along with renting to tenants.
Your management company will also serve as the "middleman" if the property needs repairs. They can also act on your behalf to collect late rent or fees from tenants.
If you use a management company, keep in mind that they will charge a fee. It's still a great way to bring in monthly income through your real estate investment.
Start Renting Out Your Property Today
Consider listing your property as for rent by owner to get a nice return on your investment. With the right steps, you can easily bring in monthly revenue by renting property to tenants.
If you need help with your Denver property, contact the professionals at Laureate LTD. to learn more today.
