BRRRR Method: Best Way to Rent
So, step three of the BRRRR method is to rent your property. Finding a tenant at the earliest opportunity is vital. Every day that a house stands empty is a day that you’re not receiving potential income.
No one is going to pretend that finding good tenants doesn’t come with its challenges. However, careful preparation and understanding the rental market will maximize your chances—and, therefore, positively impact your wallet.
Successful Renting as You Grow Your BRRRR Empire
- Don’t think of renting as step three of the BRRRR method
- Six tips for finding great tenants
Don’t think of renting as step three of the BRRRR method
It’s crucial to think about your BRRRR property’s rental potential almost from the outset. Work should commence on the rehab process at the earliest opportunity, and you’ll have a rough (or, hopefully, not so rough) timescale in place for this to be finished.
Sure, we all understand that even the best-laid plans can (and often do) go a little awry. This is especially likely if a major renovation is needed—many a can of worms have been uncovered during the rehab of a property. However, employing trusted tradespeople can help negate such issues, as their experience can help factor in many possible challenges. This allows you to build in worst-case scenarios to the rehab timescale.
Let’s imagine that you envisage the work on your property is going to take around three months. This means you should be putting in the groundwork to get a tenant right at the beginning. While some people do want to move in straight away, many will be tied into cancellation periods. Others might be moving towns or states (perhaps for work) and are planning ahead.
The key message here is that you need to get your property on the market way before the tenants will be able to move in. That way you reduce the risk of it standing empty once the work is completed.
Six tips for finding great tenants
Approach your search for renters in an organized and professional manner.
- Understand the laws and regulations in the area: Research the state and federal laws that affect both tenants and landlords. Info can easily be found on the U.S. Department of Housing and Urban Developments. You should also be up to date with the Fair Housing Act – head to Landlordassociation.org to find out more.
- Take a sensible approach to advertising: Beware of freebie advertising sites, such as Craigslist. While it is possible to successfully rent through such channels, they’ve become somewhat of a haven for scam artists.
- Think outside the box: Sure, you’re going to advertise your property on local online and physical paper ads. But don’t forget old-school methods, such as flyers and posters. Put the word out on social media and get your friends and family to share. You can even contact local businesses and ask them to put up an advert in worker areas or on their intranet site.
- Consider using an agent: While this route will cost you agent fees, it could mean that you rent the property more easily/quickly. Plus, you won’t have to spend the time and effort to advertise and screen potential renters.
- Don’t forget background checks: An essential part of the rental process and well worth the hundred or so dollars it costs for a professional search to be carried out.
- Get a professional renter’s lease agreement: Again, ensure you get this done professionally to avoid any issues further down the line.
Savvy BRRRR Investing Starts with a Competitive Loan from BRRRR Loans
Your success in real estate investing means making considered decisions every step of the way. To grow your property portfolio using the BRRRR method you need to borrow at the most competitive rate, ensure the rehab work is on time and within budget, rent ASAP at the best price, and work with your lender again to refinance and do it all again.
When it comes to loan providers, no one hits the spot better than BRRRR Loans. With some of the most competitive rates on the market—plus impressively short close timescales—we’re the go-to lender for both novice and seasoned BRRRR method investors.
Discover more at https://www.brrrr.com/loan-programs
Buy, Rehab, Rent, Refinance, & Repeat. A nationwide direct lender to real estate investors. If you have a project that needs to be funded, you’ve come to the right place.