In today’s economy, rental properties are hotter than ever. This makes a great window for beginning investors to buy that first property or for seasoned property twentieth, there are some basic rules that will help ensure a quicker return on your investment. Just because someone is choosing to rent rather than buy, does not mean they will settle for just any old place. Consumers today are more discerning than ever and are also looking for the best property for their rental dollar. So when shopping for any rental property, keep in mind these five rules.
First, location, location, location. Is the property easily accessible? Is it close to important points of interest like shopping, restaurants, and parks? Is it in a desirable school district or close to public transportation? Location can even make up for other shortcomings a property might have like small bedrooms or limited storage. Also, location is one of the few things about a property that paint and plaster can’t fix, so choose it carefully.
Buy ready-to-rent. Empty units do not bring in income. If a property needs extensive remodeling or repairs, it may take a long time before it is rentable, and we all know that these things always end up being way more expensive than anticipated.
Even better, buy already rented. This is a little trickier than it sounds. Although this is a great way to cut vacancy and advertising costs, you’ll need to do your homework. Are the leases current? Were the tenants screened? Are receipts in order and do the tenants pay on time? The only thing worse than a vacant unit is a deadbeat tenant, so be careful not to trade one headache for another.
Make sure the property is even rentable. This is especially true if you are looking to buy a condo that may be limited due to building restrictions or neighborhood codes. This is more common than you think.
Finally, ask yourself, “Would I want to live here?” Consider location, space, finishes, amenities, and safety. If the answer is no, keep looking!
Still unsure and overwhelmed? That’s when you call us here at Martin Presence. We are the one source for all your real estate investment needs. From buying to selling, maintenance and restoration, Martin Presence has you covered. We will help you make the most of your investment.