At AMOSO Properties, we love working with new investors who have decided to buy a rental property in St. Louis. An investment home can provide short-term cash flow as well as long-term returns that will build wealth and increase your financial security.
To be a successful investor, you need to make smart decisions and understand the local market. Enlist as much professional help as you can find, and remember that the most profitable way to invest is to buy and hold rather than to quickly flip the houses that you acquire.
We have a few tips and some general advice to get you started as a new property investor in St. Louis.
Understand the Rental Laws
In St. Louis, there are 88 different municipalities and 10 census-designated places, all of which have a nuanced set of laws and regulations that govern your responsibilities as a rental property owner. You have to understand the requirements for the location where you’re buying your property. There are likely to be Occupancy Permit Requirements, which need to be obtained between every tenant, and you will have to submit to an inspection while your property is vacant.
State and federal laws will also need to be understood and followed. This includes fair housing laws, the Missouri Landlord-Tenant Act, and compliance with the Americans with Disabilities Act.
Choose the Right Property
As an investor, you’ll have many opportunities to buy in St. Louis. You need to know how to evaluate rental properties and make a good choice. The things you look for as an investor will be a lot different than what you consider as a buyer who will occupy the home.
The home you purchase should be in good condition. You don’t want to spend a lot of time and money rehabbing a property that you’re going to rent out. While lower prices can be attractive, don’t choose a home that needs a lot of work. The repairs will be expensive and you’ll also delay occupancy until they’re finished, meaning it will be a bit longer before you can collect rent from tenants.
Look for a neighborhood that will be desirable to tenants. They key to positive cash flow and ROI is renting your home out quickly for the most amount of money to great tenants. Do some math to determine whether the investment you’re considering is a good one. Property managers can help you estimate what you’ll earn in rent and how long it will take to get our property rented.
Choosing a St. Louis Property Manager
Unless you have the time, knowledge, and experience to manage an income-producing property on your own, hire a professional and local property manager. You’ll need someone who knows the market well and can help you accurately price the home, market it, and screen for highly qualified St. Louis tenants. Look for a management company that has good relationships with local vendors and has a reputation for helping owners earn more and spend less on their investment. A local management company will also understand all the laws, requirements, and best practices in St. Louis property management. You need local expertise when it comes to lease agreements, code compliance, and reporting.
Look for a property manager who is also an investor. When you find someone with both professional and personal experience, you’ll have all the tools and resources you need to earn money and have a pleasant rental experience.
We’d love to tell you more about how we can help you invest in St. Louis. Please contact us at AMOSO Properties, and we’ll help you embark on a successful investment journey.