There are a lot of different factors to consider when you start searching for property to rent out. Overall, you want to buy a property that is a good long term investment, and one that you’ll be able to rent at a profit. Here are a few things to look for when hunting for a new property to rent:
This is going to be one of the most important things to consider. You don’t want to purchase a property in an area no one wants to live in. There are a few things to consider when selecting the location. You’ll want to consider the other properties in the neighborhood. If you’re looking to purchase in a neighborhood near a university campus, know that a lot of your potential clients will be college students.
You’ll also want to consider the crime rates for this neighborhood. If there’s a high crime rate, not only will this deter potential tenants, it may not be a good investment opportunity because you wouldn’t want any potential issues arising with your property and possible vandalism or theft.
Schools and jobs
Are there good schools in the neighborhood? This is a huge factor for many families as they consider moving to a new unit. They don’t want to relocate somewhere with bad schools. Although this doesn’t directly affect the value of your property, it affects how many tenants will be interested in renting from you.
You may want to look at the job market in the area, as well. If there aren’t a lot of well paying jobs nearby, you won’t attract tenants that can afford to pay rent. Avoid this issue before you get stuck between a rock and a hard place when your tenants can’t make rent.
Amenities and Development
What kind of amenities are offered in the neighborhood? Are there any parks, running trails, libraries, or other attractions? Buying a property with good public amenities available will make it a more appealing rental unit.
Another important thing to consider is how the area is developing. There are pros and cons to buying a property in a developing area. If it’s developing, you have the potential to have property value go up after you’ve already purchased, meaning you can eventually charge more for rent than when you initially start out, if the area goes under high demand. However, some people will be deterred from renting if there’s a lot of construction close by. Noise, delays to commute, and unsightly construction can all be factors in a renters decision not to rent your unit.