How to find the right rental property

Boosting your investment portfolio with a rental property might be a smart thing to do if you find the right one. But why should you consider real estate in the first place? Without question, real estate has produced some of the wealthiest people in the world. But far from being a wealthy person, you want to profit from your rental properties, and you might have difficulties doing so if you are a first-time investor. Before we get into details on remodeling, furnishing rental tips for investors, and costs, it is crucial to know how to spot the right rental and buy it. After all, real estate is a tough business and a competitive industry. Without proper research, you can end up losing thousands of dollars and get nothing in return. If you want to see returns, here are some things to consider before you go shopping for an investment property.

First, do your research

Search for the property on your own before bringing in an expert’s opinion. If you find a real estate agent to help you with the purchase, chances are they will push you to buy before you find the right investment. By doing your research beforehand, you can narrow down all the characteristics that your rental property must have before going for the purchase. There are many things to consider in a rental property, such as location, size, type, amenities, and so on. Once you narrow your searches, you can seek out an agent’s help to close the deal. But how can you differentiate a good rental property from a bad one? There are a few key features to look for in a rental that you need to know when you go out for shopping investment properties. Have your eye and ears peeled to these features, and make sure you follow these steps to find the right investment property.

Neighborhood

Every property is situated within a neighborhood that caters to different lifestyles and people. When you find a property that interests you, look around the area to see what kind of people it attracts. This will most likely indicate the type of tenants you will get in your rental and the vacancy rate. For example, rental properties near a university will attract students; therefore, the pool of potential tenants will most likely be students. Family-friendly neighborhoods attract families with children, and an area where people spend their retirement days is most likely going to attract seniors.

Job availability

If an area is undergoing development and building projects that require a lot of labourers, chances are there will be high demand for rental properties. A community with high job availability attracts a lot of tenants. See if they have a lot of industry or commercial real estate development. Announcements and signs that companies are looking for employees indicate the areas’ job availability. If the news features some big announcements such as the relocation of a company in the area, chances are there will be a big pool of workers that will come along. This is also a sign for you to act quickly as prices for properties can go up as a result. Be sure that if a company relocates across the road from your rental, employees will most likely become your new tenants.

Look for amenities

There is more to a neighborhood than job availability. Tenants like to have access to extensive amenities, such as gyms, parks, restaurants, public transportation, movie theaters, and more. All these perks attract tenants and increase the price at which you can rent your property. Have a great idea of where the highest density of great amenities is and aim to purchase a rental property in that area. You can’t go wrong with it!

Talk to locals

Many investors underestimate the power of a network. You can find out so much about an area just by talking to residents or local real estate investors. Search for real estate associations in the area, or perhaps you can learn more about the site via social media. Locals have a lot to say to you, even if it’s not a face-to-face conversation. Most of the time, you are just a click away from finding valuable information about a neighborhood. Contacts can provide detailed insight and advice on the area and lead to a profitable rental property.

Safety

No one wants to live in a dangerous neighborhood. If the area is a primary spot for criminal activity, avoid investing in rental property in the area at all costs. Nowadays, crime statistics can be found relatively quickly using the internet or by visiting the public library for accurate crime statistics for that area. Ask the local police if you will and determine if crime rates are declining or increasing in the neighborhood. Find out about the frequency of police presence in the area and decide whether or not it is the right investment place.

Average rents

Your bread-and-butter is your rental income, so you need to know the average rent in the area. This is important when you need to set the price for your property rental and determine for how much properties rent for in the same neighborhood. Aim too high, and you might be vacant for a while, go too low, and you might not be able to cover your expenses. Remember that your rental needs to bear enough to cover taxes, mortgage payments, and any other costs. Seeing how rental prices evolved overtime could also give you a good idea of rental trends. Today, an affordable rental property could mean bankruptcy later if taxes increase in the future or if you can’t afford to cover your expenses any more.

Conclusion

Good cities and neighborhoods can be found in every state, and good properties are present everywhere if you know where to look. It takes a bit of footwork and research to nail down the best properties for your next investment, but with a bit of patience, your hard work will be rewarded with a good return on your investment. Rental isn’t going to produce a substantial monthly paycheck at first, and picking the wrong property will do the opposite. That is why we have laid before you some of the features you should look after and some things to keep in mind before you are fully committed to buying your first rental property. If you enjoy our content, make sure to share it on all your social media platforms.