Features of a Profitable Rental Property
Today many people are investing in real estate as a path to make a profit and build their wealth. It is true that buying a profitable rental property is a great way to diversify your assets and have a steady stream of capital. Although this may seem to be a straight path, it can have unexpected curves along the way. When you buy a rental property, chances are, you will not use it yourself and therefore you will need to consider extra precautions because you won’t be present always. Knowing what a good rental property investment entails is one of the factors that will help you succeed in your real estate investment plans. Without proper knowledge, you are likely to make mistakes that may render your rental property investment journey unsuccessful.
Here are the top six features to consider when searching for a profitable rental property.
The Neighborhood
Location is one of the most important aspects of a good investment. The quality of the neighborhood in which you buy a rental property will determine the types of tenants you attract and the how often your property will have vacant space. Do your research and find out what is in the area to determine the type of neighborhood it is. Remember that locations do not change and tenants often make the location a major priority when choosing a rental home. A good location and cool neighborhood is an ideal place to buy a profitable rental property.
School District
Your tenants may have or be planning to have children in the near future. They will, therefore, need a decent nearby school. The property you choose to invest in should be surrounded by quality schools so that tenants will feel confident that their children will be getting the best education possible. If the nearby schools have a poor reputation, you may have often vacancies and low rental charges. Moreover, you need your property to be highly valuable when you sell it.
Amenities around the Profitable Rental Property
For you to get the most out of your rental property investment, you need to your target tenant. Once you know your target tenant, identify what is important for them and make sure it is covered. Malls, parks, gyms, movie theatres, a good transport network and other social amenities influence a renter’s choice of rental home. Such amenities will attract various renters and give you an easy task of receiving the monthly income.
Blooming Job Market
Areas with growing businesses have flourishing employment opportunities that attract more people who in turn will need rental homes near their places of work. Your rental property should have good employment exposure. Visit your local library to find out how your area of interest rates. While new companies will increase the number of people looking for accommodation, it can also affect the rent prices (positively or negatively) depending on the corporation itself.
Rent Prices
When choosing a rental property in a neighborhood, it is important to consider the prevailing rental charges. This will help you know how profitable your rental property is going to be. While the rental charge should be in line with the surrounding properties, you need to determine if it covers your mortgage and other expenses.
Neighborhood Security
No one wants to live in a criminal activity hot spot. Do a thorough research on the crime statistics of neighborhood you want to buy a rental property. You can’t have a good and profitable rental property in neighborhood that has high crime rates. You want security for your investment and the tenants also require their security. Find out the information for yourself and don’t entirely depend on what the seller tells you. It is also good to know the frequency of police presence in that neighborhood.