Are you looking for multi-family properties in Chicago? Check out our tips to help you save time and money when you are ready to buy!
Multi-family property investment in Chicago is a wonderful way to build your portfolio. However, not every multi-family property will be profitable. It’s important to know what to do both before and after the sale to ensure you are getting the most for your money. Below, are a few things to look for when buying a multi-family property in Chicago!
The Right Location
A great property in the wrong location isn’t going to provide the type of returns you’re after. 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 Chicago, make sure you pick a great location!
The Right Tenants
Tenant screening should be thorough and mandatory for every person living under your roof. Even if you know the tenants previously, you’ll want to run background checks, contact references, and verify income. Not doing so can have you feeling stuck with the wrong people in your rental, And when the wrong people are in your rental, you’re likely to lose money in the long run due to missed rent or property damage. Be sure to check every applicant before allowing anyone to move into your multi-family property in Chicago.
You should let your tenants know upfront what will and will not be tolerated. For example, 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.
Nobody wants to be policed by their landlord, however, everyone wants to live in peace. By setting boundaries upfront, you’ll be able to screen out the bad ones and find two (or more) tenants who will be compatible.
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 (having two units will lower your vacancy rate) however, damages to the property can affect 2 parties, 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 may be 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. GALLC can help you find the best properties and great deals on multi-family properties in Chicago!