Tips For Locating the Right Rental Property
Choosing the right rental property is one of the challenges facing any new real estate investor.
Choosing the right property will give you enough rental income to cover all the costs.
It is also important to choose well, to make sure you keep down your maintenance costs.
Here are a few tips to consider for locating the right rental property.
1.
Make a checklist of the features you want in the rental property, your budget, what type of neighborhood, and other details.
Carrying this list with you will help you quickly evaluate a property, without allowing your excitement or emotions to cloud your judgement.
2.
Carefully check the condition of the property.
Property which is in disrepair may appear to be a bargain, but often becomes a money pit.
Choosing a well maintained property usually saves you money in the long run, even though it costs you more immediately.
Don't rely only on your own eyes.
Once you are ready to make a deal, insist on having a professional home inspection to find any issues which might be escaping your eyes.
3.
Consider whether the unit will require renovations to make it attractive to tenants.
If it will require updating, make sure to figure all costs involved in the renovation into your budget, and cost analysis for the property.
4.
You will hear real estate investors say "location, location, location" all the time, and for good reason.
The proper location adds value, and helps in keeping the property full.
Identical properties in different neighborhoods can command highly different prices, and maintain much different vacancy rates.
Always choose the best neighborhood possible.
This not only increases your rental rates, and levels of tenancy, but also greatly affects your resale price when you choose to sell the property.
5.
Don't neglect the history of the property.
If the home has been occupied by a very undesirable family in the past, it may carry a reputation with it.
Ask people in the neighborhood what they think of the property, and whether they know of any problems.
Knocking on a few doors can save you thousands of dollars in the long term.
Also, it never hurts to call the local police station and inquire about both the property and the neighborhood.
6.
Is the property currently being rented or leased? Are you obligated to honor the current agreement, and what is the remaining term of the lease? A current tenant can lengthen the time before you can raise the rent, or make any renovations you desire.
If the rental rates are within your planned budget this may be fine, but always be sure to consider the impact of existing tenants.
7.
Review the properties landscaping, parking, and other factors which will require routine maintenance.
Figure either your time, or the cost of maintenance for routine maintenance of the property and buildings.
Ignoring to budget for these costs could quickly leave you with a monthly loss, instead of monthly income.
While this short list does not cover all the factors you must consider while locating the right rental property, it is a good guideline to reduce your chances of loss.
Make sure to evaluate every property carefully, and soon you will be enjoying the profits of a successful investment.
Choosing the right property will give you enough rental income to cover all the costs.
It is also important to choose well, to make sure you keep down your maintenance costs.
Here are a few tips to consider for locating the right rental property.
1.
Make a checklist of the features you want in the rental property, your budget, what type of neighborhood, and other details.
Carrying this list with you will help you quickly evaluate a property, without allowing your excitement or emotions to cloud your judgement.
2.
Carefully check the condition of the property.
Property which is in disrepair may appear to be a bargain, but often becomes a money pit.
Choosing a well maintained property usually saves you money in the long run, even though it costs you more immediately.
Don't rely only on your own eyes.
Once you are ready to make a deal, insist on having a professional home inspection to find any issues which might be escaping your eyes.
3.
Consider whether the unit will require renovations to make it attractive to tenants.
If it will require updating, make sure to figure all costs involved in the renovation into your budget, and cost analysis for the property.
4.
You will hear real estate investors say "location, location, location" all the time, and for good reason.
The proper location adds value, and helps in keeping the property full.
Identical properties in different neighborhoods can command highly different prices, and maintain much different vacancy rates.
Always choose the best neighborhood possible.
This not only increases your rental rates, and levels of tenancy, but also greatly affects your resale price when you choose to sell the property.
5.
Don't neglect the history of the property.
If the home has been occupied by a very undesirable family in the past, it may carry a reputation with it.
Ask people in the neighborhood what they think of the property, and whether they know of any problems.
Knocking on a few doors can save you thousands of dollars in the long term.
Also, it never hurts to call the local police station and inquire about both the property and the neighborhood.
6.
Is the property currently being rented or leased? Are you obligated to honor the current agreement, and what is the remaining term of the lease? A current tenant can lengthen the time before you can raise the rent, or make any renovations you desire.
If the rental rates are within your planned budget this may be fine, but always be sure to consider the impact of existing tenants.
7.
Review the properties landscaping, parking, and other factors which will require routine maintenance.
Figure either your time, or the cost of maintenance for routine maintenance of the property and buildings.
Ignoring to budget for these costs could quickly leave you with a monthly loss, instead of monthly income.
While this short list does not cover all the factors you must consider while locating the right rental property, it is a good guideline to reduce your chances of loss.
Make sure to evaluate every property carefully, and soon you will be enjoying the profits of a successful investment.
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