Are you looking to purchase a rental property? If so, what should you be looking for to obtain the best return on your investment? The following are five things to consider at this time to increase the odds of getting a rental property that will be profitable now and in the future.
Determine the neighbourhood in which to buy. The location plays a large role in the tenant pool as well as the vacancy rate. For example, buying near a college or university may appear to be a wise move. Nevertheless, the owner might find the property sits vacant each summer when students return home. Furthermore, the city, town, or county may impose restrictions on rentals and a person needs to be aware of this before purchasing. One way to learn more about a potential neighbourhood is to speak to those who already live there and see what they have to say. Be sure to look at nria.net to see what things you might want to ask when researching properties.
When buying a single-family home, take the time to learn about schools in the area. Parents want their children to go to a good school and may be willing to pay more to ensure they do. However, this is only one reason why schools are important. When the time comes to sell the residence, having good schools nearby will help boost the property value and possibly help to sell the home in a shorter period of time.
Nobody wants to move into a neighbourhood where they are scared to go outside or let their children walk to a friend’s house. Be sure to learn about the crime rate in the area and which crimes are most prevalent. This can also affect the amount that can be asked in rent, as a person won’t pay as much for a property if they have concerns about their safety. In addition, ask if the police frequently patrol the area as tenants will want to know this as well. A low crime rate will attract better tenants.
Many people prefer to live in an area where they have easy access to restaurants, a library, grocery stores, and more. Parks, gyms, movie theatres, and public transportation are other things to consider that tenants might want when renting a property. An experienced realtor should be of help in providing this information, but this is also something that people who already live in the neighbourhood can provide information about. Don’t hesitate to ask them what they like about living there and what they dislike. Most people are more than happy to share their opinion on this type of situation.
The job market should be of importance to both landlords and tenants. The landlord wants to ensure he or she will receive the rent in a timely manner while the tenant wants to know gainful employment can be secured if needed. For this reason, it’s best to learn unemployment statistics for the area where you are considering purchasing. Although this can change in the future, it’s best to have this information when you are ready to buy. An area with low unemployment will attract more potential renters than an area where jobs are scarce.
Consider the above when you are looking to obtain a rental property. This information is of great help in determining whether you are getting a great deal or will struggle to keep the residence rented in the future.