If you choose wisely, investment properties can be thrilling and highly profitable. You can make a lot of money with the right rental property.
However, there are some things you need to know before you invest in a rental estate. Let’s have a look at them in more detail.
Here are nine crucial features to look for when purchasing a rental property.
1. Location, location, location
The influential factor in choosing a profitable rental property is its location. Look for areas with high population density and job growth.
Also, consider the average income of potential renters in the area. An Airbnb management service by Estaga will be able to make a profit from almost any location, so don’t worry if it is not perfect.
2. The right property type
The type of rental estate you choose will also have a big impact on its profitability. For example, single-family homes are usually more profitable than apartments. This is because they tend to appreciate in value more quickly, and they have lower vacancy rates.
3. Positive cash flow
When considering a rental property, ensure to calculate its potential cash flow. This is the difference between the amount of rent you collect and the amount of money you have to spend on expenses like mortgage payments, taxes, insurance, and repairs. To be profitable, your rental estate should have positive cash flow.
4. Low maintenance costs
Another essential factor to consider is the property’s maintenance costs. You want to choose an apartment that won’t require a lot of expensive repairs.
Otherwise, your profits will quickly disappear. Make sure to carefully check everything and find out whether something needs to be repaired and how much will it cost you.
5. High rental rates
Of course, you’ll also want to choose a property that can generate high rental rates. To find out what rent prices are in an area, research the local market and talk to a real estate agent.
They’ll be able to tell you what properties are in demand and what kind of prices you can expect to get for your rental unit.
Keep in mind that location isn’t everything — the condition of the property, the amenities it offers, and even the surrounding neighborhood can all affect how much rent you can charge.
But if you find a place that’s in high demand, you can be sure that you’ll be able to get top dollar for your rental unit.
6. Low crime rate
Another influential factor to take into account is the crime rate in the area. Tenants are less likely to want to live in an area with a high crime rate.
As a result, your vacancy rates will be higher, and you’ll have a harder time finding tenants. So, ensure to research the crime rate in any area you’re considering before you make a purchase.
7. Good school district
If you’re looking to rent to families, another crucial factor is the school district. Families are more likely to want to live in an area with good schools.
As a result, you’ll be able to charge higher rent prices. So, if you’re looking to purchase a rental property that will be in high demand, choose one in a good school district.
8. Amenities and features
Another thing to consider when choosing a rental estate is the amenities and features it offers. Tenants are more likely to want to live in a rental unit that offers amenities like on-site laundry, a fitness center, or a swimming pool.
Thus, you’ll be able to charge higher rent prices. With https://estaga.com/, you can increase your chances of offering additional features to renters.
9. The right price
Of course, the price is also essential and sometimes even critical. You’ll want to find a property priced below market value so you can get a good deal on your purchase.
But be careful — if a property is priced too low, there may be something wrong with it. Do your research and work with a real estate agent to find an apartment priced right.
As you can see, there are some factors to consider when choosing a rental property. But if you keep these factors in mind, you can be sure that you’ll find a profitable rental property that will be in high demand. So, don’t wait — start your search today!