From the moment that you decide to invest in real estate, there can be a great deal of work to be done. The rental real estate field, which can be quite profitable, can also require you to have a good understanding of what does – and doesn’t – make for a money-making property.
Before you make a purchase (or another purchase), be sure to consider the following key features of what can make a rental property more profitable for you:
1) Location – More Specifically, Neighborhood. You’ve likely heard it over and over again that the most important criteria in real estate is location, location, location. But where your property is located can make a difference. For instance, the neighborhood can have an impact on how often you may face vacancies, as well as the quality of the tenants that you attract.
2) School District. The school district is another biggie. This is because the tenants that will come looking for a place to live will often want to be sure that there are good, quality schools nearby. This can also have an effect on the property’s value when you go to sell it.
3) Crime Rate. Nobody wants to live in an area that is ridden with crime. Prior to making a property purchase, you can check the crime statistics in order to get a good idea of how safe the area really is. Be sure to look for both petty and serious crimes, including the rate of vandalism.
4) Rent Rates. The income that you bring in from your tenants will be a key component of how much your investment will (or will not) make. Here, you need to be sure that the monthly rate that you can charge will be in line with the surrounding properties, while at the same time being enough to cover your mortgage and other property related expenses.
5) Amenities. Having your property located near parks, stores, and other places of interest to potential tenants can be a big factor in terms of how attractive your property is to potential tenants, as people will oftentimes factor the local conveniences into their decision.
As managing a rental property and screening for tenants can be somewhat time consuming, once you have purchased a rental property, you may also consider working with a property manager. This way, you can free up your time and have the property management team work with tenants and potential maintenance issues. For more details on how to find the best property manager for your needs, Contact Us.