Investing in rental property can be a smart move if you make smart decisions. When you’re buying a rental property investment, remember that your decision today will affect how you manage the property tomorrow. If you’re still in the purchasing process, you can make decisions now that will determine how long your property stays vacant, how many applications you’ll attract, and the kind of tenant who will be interested in your property.
At Real Property Management Gold, we understand the importance of successful leasing and management. We know it starts with the buying decision. There are a few things to consider when you’re selecting the right investment property.
How to Invest in Property: Location Matters
This is real estate after all, so location matters. It plays a critical role in the amount of effort required to manage the property. Not all markets are created equal. Look in neighborhoods that have lower vacancy rates, higher rents, and appreciating values. This is where local expertise is particularly important. Consider how good the schools are in the area, and whether there is public transportation, shopping, and recreation nearby. You also want to think about municipal regulations and different ordinances that exist for landlords. Some towns levy heavy fines for violations while others are less stringent. Experienced investors know this makes a huge difference. HOAs have their own fees and regulations as well, and those can add more time, cost, and hassle.
Real Estate Investing: Property Details
Once you’ve chosen a good location, look at the details of the property itself. With more families seeking to rent long term, long for single family homes that support a family lifestyle. Three bedrooms and two bathrooms are ideal, and a fenced yard. Fewer customizations and a home less than 15 years old will help you keep maintenance costs down and attract tenants. Avoid small or quirky layouts, unfenced yards, and busy streets which can turn off prospective tenants. Avoid older homes as well. They are more expensive to maintain.
We are happy to help. If you have any questions about buying an investment property, or you’d like to hear more about real estate investing, please contact us at Real Property Management Gold.