Investing in real estate is worthwhile and cost-effective when you know what to look out for. Here are some qualities to look for when searching for the perfect rental property.
The unique location of your property affects the types of residents you can and will attract. For example, buying near a university means a large percentage of your tenants will likely be college students.
Look in middle-of-the-road areas rather than the nicest areas of the city, which are likely to be unavailable. Consider owner-occupied parts of town, and do some research on the school districts and other surrounding properties like parks, malls, gyms, etc. Check out crime statistics and other relevant factors as well.
Price & Taxes
Equally important are a property’s price and associated taxes. Price gives you insight into the condition and value of a home; for instance, if you buy a cheaper property, you may encounter more problems or risks than with a more expensive property. Property taxes vary per area; talk to the town’s assessment office for more information, or speak with other homeowners in the community.
Consider the local job market when shopping for investment properties as well. Locations with growing employment opportunities are more likely to attract qualified tenants. Watch for announcements of major companies moving to new areas, and research how certain neighborhoods stack up in terms of the local job market.
Rent & Future Development
Before investing, research the average rent in the area, and compare your numbers. Will the amount be enough to cover your expenses? If not, keep looking. Get a feel for where the area is headed to predict if taxes and other expenses will increase in the coming years.
Additionally, check your local municipal planning department to find out about the new developments going up in the property’s area. Watch out for new developments that could cause competition for you or perhaps help your property prosper.
At AMG Property Management, we’d love to work with you to make your rental property as profitable as possible. Give us a call today to learn more about how our property management services can help.