Rental properties are almost always a great investment. However, there are certain criteria that will ensure that the property you are considering buying is a good choice from an investment perspective.
No matter the type of property or the area it is in, it is critical to take care of the tenant/landlord relationship. Good communication, well-kept properties and credit report referral programs are all great ways to do this. Past rent reporting is a great way for your tenants to use the fact that they pay rent to boost their credit score.
If you are looking at buying a family-sized home, the schools in the area are extremely important. Couples with kids are very keen on having good schools close to home.
If you have a certain type of tenant in mind for your rental properties, you will want to be aware of the type of neighborhood you are buying a home in. As an example, if you are near a university, the odds are you will have students living in your home.
One of the first things that people look at when renting a home is the crime rate in the local area. If there is a high level of crime, you may have a hard time filling that property with the type of tenants you want or charging the rent you want for that property.
- Average Rent
The average rent in an area is a good indicator of how much you can charge for your rental property. You want to make your rental home attractive to those looking in the area and the average rent is a factor that is relevant to most renters.
- Vacancies in the Area
If there are a lot of vacancies in the area, there will be more competition for your listing. An area with very few vacancies will increase your chance of renting your home quickly.
Are there amenities nearby or is the property located in a more remote region? Close access to transit, commercial centers and other amenities is a powerful draw for many renters who are looking to live close to everything that they would need in their daily lives.
- Proposed or Planned Development
Is there a school or shopping mall being built in the area in the near future? Any future development in the area near your property will be an asset once the construction is complete.
- Job Market
Are there a lot of jobs available in the area? Employment opportunities are one of the most common reasons for people to relocate and a strong local job market is a definite asset to any rental property.
- Property Taxes
How much are the property taxes in the area? If they are exorbitant and excessive, it may make the potential return on a rental unit not worth the investment. Always check the property tax rates before making any rental investments.
Do Your Homework Before Making Real Estate Investment Decisions
Not all homes or neighborhoods are created equal. Consider these factors before making any real estate investment decisions to ensure you make the best choice possible.
When you do find the right unit and have tenants living in your rental property, take the time to invest in that relationship. A credit report referral program that allows ongoing and past rent reporting for your tenants helps do exactly that. You can help your tenants use the fact that they pay rent to boost their credit score by leveraging CreditRentBoost.com credit report referral program.
CreditRentBoost.com helps landlords protect their investment with ongoing and past rent reporting and benefits tenants by letting them pay rent and boost their credit score at the same time. Check CreditRentBoost.com today.