Are you looking for multi-family properties in Kansas City? Check out our tips below to help you save time and money!
Multi-family property investment in Kansas City is a wonderful way to build your portfolio. However, not ever multi-family property will be profitable and not every property is equal. It’s important to know what to do before and after the sale to ensure you are getting the most for your money. Below, are a few tips to use when buying a multi-family property in Kansas City and if you have any tips of your own, please feel free to share!
The Right Location
Great property in the wrong location isn’t going to provide the returns you’re after and could even be detrimental to your business. You may have to compromise on the amount of rent you’re charging or on the quality of your tenants. High-quality tenants aren’t going to live in a bad area, nor are they going to want to overpay for doing so. If you want to buy a multi-family property in Kansas City, make sure you pick a great location with a healthy ROI!
The Right Tenants
Tenant screening should be thorough and mandatory for every single person living under your roof over a certain age. Even if you know the tenants previously, you’ll want to run background checks, contact references, and verify income. You never know what could have changed or even be hidden in those reports. Not doing so can have you feeling stuck with the wrong people in your rental and an increased risk of losing money in the long run due to missed rent or property damage. Be sure to check every applicant before allowing them to move into your multi-family property in Kansas City.
You should let your tenants know upfront what will and will not be tolerated. Some examples, loud music heard through the walls, parking rules, smoking on the property, the number of guests at any one time, and pet policies. Putting rules in place ahead of time will help alleviate any potential conflicts between your tenants down the road when there are clear and written boundaries in place.
Nobody wants to be policed by their landlord, however, just about everyone wants to live in peace. By setting boundaries upfront, you’ll be able to screen out the bad ones and find many more tenants that will be a great addition to your property.
Understand The Differences
Owning a multi-family property is different than owning a single-family home. While it’s great to not put all your eggs in one basket as far as renters, damages to a multi-family property can affect more than just the one unit involved, resulting in a greater loss of income for you. Let’s say a pipe breaks and floods the units. You may lose multiple tenants and have a larger area to repair than you would with a single-family home. That said, having multiple tenants will help guarantee that you always have some income coming in even if somebody moves out.
Often times, a duplex, triplex, or quad, will simply be affordable housing, without any draw or uniqueness. By adding great curb appeal, adding features other properties in the area lack, and properly maintaining the building will help your building stand out from the others. Depending on the building, you could add tables, flowers, a fresh coat of paint, or even a hot tub. These little perks will ensure your units are always rented out at the best possible prices.
Work With An Expert
If you haven’t dealt with multi-family properties in the past, there is much for you to learn. Working with a local, trusted professional will help you find a great property that will perform well, without breaking the bank. Mastiff Home Buyers and Renovation Corp can help you find the best properties and great deals on multi-family property in Kansas City!