There are so many benefits to buying a property for the purposes of renting it out. It is a second income, you own a chunk of valuable real estate if you build it up right, and if you pick the right property, the money can keep coming in. But before you think about quitting your job and picking a random house to renovate, you will need to bear a few things in mind…
The neighborhood will have its impacts on two things. The types of tenant you will attract, and how often you will have tenants vacate. If you pick a property in a neighborhood near to a college, you will have a tenant pool comprising primarily of students who will vacate during the summer months, potentially leaving you out of pocket from June to September. Picking the right location is the smartest thing you can do. If you go for a location that is full of new multifamily developments, you will have a specific caliber of tenant. Families are likelier to be prompt with the rent and be far more reliable. The new developments, like these new multifamily ones, attract those that are keen on modern and luxury living. So, if you can afford a location like this, it’s a very sensible investment.
Are There Schools?
If you can find a location with schools in abundance, you will attract reliable tenants. But there is a caveat in this, the quality of the school will have a bearing on the value of your property investment. If the school has a poor reputation, it will poorly reflect in your property’s value. And if you ever decide to sell the property on, you could end up finalizing for a much lower cost than you had originally planned for.
The Crime Rate
Nobody likes to live in an area that is primed for suspicious activity. You will need to go to the library in that area or the local police department to get statistics of the crimes. The homeowner you’re buying off is unlikely to give you an accurate account of the crimes as they need to sell up. The crimes to keep an eye on are petty crimes, vandalism, as well as serious crimes and the most recent activity.
Nearby public amenities, from movie theaters to restaurants will be a hub that attracts people, and as a result, the value of the area could be very lucrative to your wallet. It’s pretty simple to do research on a specific area and its amenities thanks to Google, but it’s worth looking at the promotional literature to get a flavor of what is around.
The Number Of Listings Or Vacancies
If there is a high number of listings, this can either signal a seasonal cycle, or it could be an indicator of a neighborhood that has deteriorated in quality. Be sure to check beforehand. And if there is a high number of vacancy rates, you may have to lower your rents to snap up tenants.