Investing in rental property is a good way to make a little extra money on the side of having a full-time job. Once you know how to invest in rental homes, the only thing left is to find one, but not everyone knows how to determine a good rental property. With over 115 million occupied housing units in the United States, finding the right property to fit a buyer’s needs can feel like looking for a needle in a hay stack.
When surveyed, 98% of buyers found a real estate agent to be a useful source of information during their home search. Real estate agents have years of experience knowing how to determine a good rental property, and knowing when to walk away. While many of the property-related inquiries are usually questions to ask real estate agents, there are a few things a potential landlord can look for when hunting for that perfect property.
As with everything else, the key to successful investing in rental property lies in location. When you find a building you like, you need to step back and evaluate a few things. First, look at the neighborhood. How is the crime rate? Be on the look out for instances of vandalism and petty crime, and check local records to see if crime is trending up or down. If there are other properties for sale or rent in the area, they may determine what you can expect to charge your tenants.
Once the immediate neighborhood passes inspection as far as safety and profitability, you want to make sure it will be a desirable place to live. Check out the reputation of the school district in case any of your potential tenants are parents, and look into the local job market. Try to find announcements of any corporations moving in to the area, and gauge the general reaction people have had to this news. The more positive a reception the corporation gets, the more desirable homes nearby will be.
Lastly, look around for local amenities that may draw more people to the area. Shopping, dining, and accessible public transport are all things that renters look for in their area. Some city neighborhoods have annual festivals or block parties that may attract or deter certain tenants.
Now that you know how to determine a good rental property, it is time to start shopping. Finding a good real estate agent is key to your success as a rental property buyer. By working with your real estate agent, you will be a more informed buyer and landlord, and both you and your tenants will flourish. More.
