Do you dream of one day owning your own vacation rental property? Or even better owning multiple vacation rentals? If owning property is one of your lifelong dreams, you don’t have to wait to start working toward your goal. There are countless habits you can work on daily to help you achieve your dream.
Habits are crucial when it comes to achieving any goal. Here are 8 habits you can start building today to help you purchase your first rental property:
Establish a long-term and short-term plan
Did you know goal-setting is a habit? It takes consistency and daily work in order to be a great goal-setter. If you want to become a property owner, you need to develop goal-setting skills. Every goal you set gets you one step closer to achieving your objectives.
Take a second and write down your daily, weekly, monthly, and yearly goals. Some of your goals could be:
- Research 5 travel destinations for vacation rentals each day.
- Eliminate two dinners out each week in order to save an extra $100.
- Contact 3 property owners and pick their brain about owning properties each month.
- Save $20,000 for a down payment on a rental property by December 21st, 2019.
Once you have determined your goals, create a timeline for purchasing your rental property. This will give you a deadline and help you stay focused on your long-term and short-term goals.
Automate your savings
Have you ever heard the saying “out of sight, out of mind”? Well, your savings can act the same way. If you don’t see it hit your bank account, it’s as if it wasn’t even there. Automating your savings can help you stay on track to reach your goal of becoming a rental property owner.
Determine an amount you would like to put toward your rental property every week, month, or year. Then set up your bank account to automatically deposit that amount in a separate savings account for your property. Before you know it, you will have your down payment for your first rental property.
Shawn Breyer, Owner and CEO of Breyer Home Buyers states, “Qapital is a great savings app that automatically pulls out money from your checking account into your savings goals. Qapital allows you to customize and automate your savings using ‘Rules,’ such as save $10 for a vacation every time you hit the gym.”
Work on increasing your credit score
Many lenders use your credit score to determine the interest rate you’ll receive on your mortgage. The better your credit score is, the better interest rate banks will offer you. A score above 700 is considered good, while a score above 800 is considered excellent.
If you’re not ready to purchase your rental property right now, there are several ways you can work on increasing your credit score. According to Experian, here are the top ways to improve your credit:
- Pay all bills on time. Any late payments can have a negative impact on your score.
- Maintain low credit card balances. High credit card balances can also negatively impact your credit.
- Focus on paying off debt. Don’t move your current credit around. Having fewer credit cards with the same balance may also lower your credit score.
- Don’t apply for additional credit cards if you don’t need them.
Review your credit report and determine the best ways to increase your credit score.
Review your progress monthly
You’ve set your goals and worked hard on them all month, now it’s time to review. By reviewing your monthly goals, you can evaluate your progress and make adjustments where you see fit.
Reviewing your goals can also increase your motivation. You can see how hard work pays off from consistency and persistence.
Property buyers need to understand how to analyze a deal so they can take immediate action when the time arises.
Breyer states, “You may not buy a vacation rental for 6 months, but make it a habit to go online and analyze 2-3 properties per day. We analyze roughly 100 deals to buy one.”
The more familiar you become with the real estate market, the easier it will be to spot a good deal and to know what you’re looking for.
Stay up to date on rental laws and regulations
When it comes time to purchase your rental property, you want to get ahead of the rental laws and regulations in your rental community. Regulations change all of the time. Some areas have settled on short-term rental (STR) laws, however, some areas are just beginning their discussions.
Whether or not you are considering hiring a property manager, it may be a good time to contact one. Property managers are well-versed in local laws and regulations. At TurnKey, our local General Managers embed themselves in the STR conversations in the cities they manage, attend council meetings, donating time and money to advocacy groups, and mobilizing STR homeowners.
Improve your handyman skills
Just like with purchasing a home, your rental property will need quick fixes. If you can take care of these projects on your own, it may save you a lot of time and money. With a little bit of practice and guidance you could change door knobs, construct furniture, or install shelves. There are countless projects you could take on yourself. Try to take on little projects at home to build your confidence.
Keep in mind, some projects may require a contractor. Assess the project before moving forward with your own DIY quick fix.
Be willing to learn
Jordan Santiago, founder and CEO of Crowned Mane Real Estate states, “Read books, read articles, watch videos, listen to podcasts, attend seminars, and more. Never stop learning about the rental market.”
The rental market is continuously changing. That’s why it’s important to stay ahead of trends and the happenings within the market.
Becoming a vacation rental property owner starts long before you purchase your first property. If you dream of becoming a rental owner, pick up some of these habits today. You’ll be grateful you did!