Believe it or not, not every home makes a good rental home. Investing in one of these properties could lead you down a long road of vacancy and quite a bit of lost money. Therefore, before you make any investment, there are a few things that you want to confirm first. For instance, you will want to take a hard look at the potential rental home itself, but that is not all. Taking into consideration the financial investment, as well as the surrounding location are also huge factors to look at.
So, let’s break it down a bit further. We have put together a list of the qualities that make a good rental home – from all aspects.
- The basic amenities we have all come to enjoy – which makes them no longer seem like amenities at all – are important. For example, heating and air conditioning, on-site laundry facilities, and outdoor space.
- Check the condition of the property. All too often, investors think that some repairs are minor or fail to look at the full picture of the property’s condition, which can lead to an endless money pit of repairs. A good rental home will be in a healthy, sturdy condition.
- It is not the actual home, but the neighborhood that can make a property profitable. For example, investing in a property that is in a well sought-after neighborhood could mean the demand for your property would soar. It also could signal a decent average rental rate.
- Crime rate also affects the outcome of the rental. Take into consideration the crime in the area you are seeking to invest in and, if it is a high-crime area, know that you may have trouble getting your money’s worth in rent – if you are able to rent it at all!
- Convenient access to public transportation and amenities is important. The easier it is to get to local areas, the easier it will be to keep the rental home occupied. This is especially true in places such as college towns. Access to gas, grocery stores, retail outlets, as well as restaurants and entertainment are important.
- Properties that are located near top-rated schools are always more apt to be in demand.
- Research the value of the property and whether there is potential for future growth. Some neighborhoods are up and coming and others may be on their way out. Be sure to know the difference in your area before you waste your money.
Your future tenants want to rent a place that they can call home and feel at home in. This is something to keep in mind when deciding whether or not a particular property will make a good rental home. All the qualities that make a home and make everything around it desirable are qualities that renters will be looking for.
If the financial investment is right and the property has all of the good qualities, then you may have a good rental home on your hands.
Marina Shlomov, a managing partner at ALH|Podland Rental Homes Property Management is the author of many articles on Landlording, Property Management, and Real Estate Investing. A residential builder in the state of Georgia since 1999 and a property manager, Marina is an investor herself. Her property management company is intended “For Investors” and “By Investors” for a simple reason – she knows what investors’ goals are and she works hard to reach their goals. In her spare time, Marina likes to spend time with her family, friends, garden, read and travel. Check her out atwww.alhpodland.com.
You can find Marina’s articles and comments at @rentalhomesatl on Twitter, on Facebook, Google+, Blogger. and YouTube.
