4 Things To Look For In A Rental Property

When it comes to buying a rental property, there can be a number of concerns that need to be addressed before making any final decisions. Becoming a successful landlord starts with doing your research beforehand. If you’re willing to attract potential tenants to your new purchase, then you will need to consider aspects surrounding the property itself.

Here are four important things to look for in any rental property

Profitability

When you’re looking to invest in a rental property, you want the purchase to eventually make enough profit for yourself in the future. So, it’s important for you to recognize that the local rental market has potential growing margins for the future.

In addition, you want your rental property to be profitable itself. There seems to be a rule of thumb that shows a rental rate being at least 1% of the entire purchase price of the house each month. So, if the market is growing, then the price of the house will rise, and you will be able to increase the rent to get better returns on the property.

No Major Utility Issues

If you find a nice, profitable piece of property - make sure to check that there are no major utility concerns within the home. Such concerns can be avoided by examining the water pipes, appliances, electricity units, and maintenance of the exterior of the house. You don’t want to risk putting a down payment on a house, then lose money in the process because you have to pay for fixing the house. This will further imbalance your out-of-pocket finances.

Try to make a checklist when walking through a potential new house, and mark off for rusty pipes under the sink, any leaks or drainage, and non-working appliances. Then, come up with a checks and balances list to see whether your profit will be positive or negative.

Affordability

It’s important to note that as a rental property owner, you can work your way up. Starting small will help you grow your returns at a slow and steady rate. In addition, it will become a great segway into increasing your number of rental properties.

Start with a small, single-family home to maintain, and see if the landlord gig is for you. Use Google Calendar to help start to get organized with your tenants. Then, if you enjoy it, it will become a second instinct, and you’ll be able to buy more rental properties as time goes on.

Great School District

If you want to attract well-suited tenants, you’ll need to recognize the environment surrounding the house. This includes recognizing the schools, neighbors and amenities around the property itself.

In addition, a neighborhood with high graduation rates can attract tenants that are most likely looking to upkeep the home that you provide for them.