Rental Investor Tips
Here’s a list of things to consider if you are thinking of buying rental property.
- Choose a neighborhood that will attract the kind of tenant you want in your property and return the amount of rent you need to make your investment profitable.
- If you buy in a neighborhood full of families with kids, think about the school districts. Good schools nearby make neighborhoods more attractive and can garner higher rent rates. If you are buying near a college or university, consider that your renter may be a student who will not live in your property year-round.
- Look for neighborhood crime stats before buying. Ask the police department for details of how often they get called to certain neighborhoods and for what reasons.
- Look at neighborhoods during different times of day to get the best feel for the level of activity and how the neighbors take care of their property.
- Consider nearby employers in your search. Don’t buy a house on the outskirts of town if the jobs are all downtown. Pay attention to job announcements — an influx of new jobs can mean an influx of potential renters to a certain area.
- Find a free property investment calculator online and use it to determine whether or not you can get the amount of rent you need to make your venture profitable. Also consider the age and condition of the property and any age-related maintenance costs you might soon face.
- Don’t skip the insurance. Since you won’t be occupying or have daily control over the property, talk to your agent to find out what kinds of extra insurance might prove helpful to protect you in unforeseen circumstances.