WHAT KIND
OF PROPERTY SHOULD YOU INVEST IN TO GET MAXIMUM RENTAL POTENTIAL?
These are few of the features that you as a
landlord should look into when purchasing a property with the purpose of
generating rental income.
Now a day’s everyone is investing in properties that will
generate rental income for them and why not? Rental Income can be a added help
in regards to savings, mortgage payment or just extra cash inflow. Whatever the
reason for you picking up a property for potential rental income, make sure
that you make the right choice when choosing a property for the sole reason of
rental income.
But how do you know what is the right property? After all,
there are numerous property options out there in the market.
·
What should you buy?
·
What shouldn’t you buy?
·
How many bedrooms will pull more tenants?
·
What about garage?
·
Neighbors?
·
Size, color, age?
These are some of the things one should keep in mind while
shopping for a property to attract more tenants and make most as a landlord.
We provide you with some elements that you can write in your
check list and it will help you to make the right deal.
1. BEDROOMS: If you are looking for a long term
rental tenant then it would be wise to invest in a two bedroom or more. Tenants
who are single tend to choose studios or one bedroom property but they are not
a long term tenant as compared to a family or a couple who would move in and
stay for at least a couple of years. Therefore a property with 2 to 4 bedroom will
make the best rentals because they attract long term tenants, cutting down your
vacancy expenses.
2. AGE: Older properties may not be the best fit
for tenants. The older the property the more problems arise and more money is
required to fix it. Also older properties are less energy efficient and when
the bill comes your tenant will do the math easily and know that this house is
costing him/her more than what they should pay hence they might consider moving
out into a newer property.
3. GARAGE: It is difficult to find a long term
tenant in single homes if there is no garage. Tenants tend to collect a lot of
things and would prefer a house with garage where they can store their stuff as
well as park the car when it snows or rains. Hence if the property especially
in case of single family homes has a garage, it will automatically attract long
term tenants.
4. LAWN: Properties with huge lawns and backyards
will never be taken care of as it can be done by the owners; of course we are
not saying all tenants are like that. When investing in a property solely for
rental income, look for a smaller yard or lawn where the tenant has minimum
work to do. But yes there must be always a small recreational lawn or space
where the tenant and his family can run around and play if you want a long term
tenant.
5. PARKING: All the tenants prefer one parking spot
minimum. No tenant would prefer to park his vehicle on the street. If a garage
is not possible give your tenant off-street parking like a driveway spot,
carport etc.
6. LOCATION: When looking to purchase a property,
keep an eye out on what’s nearby. A tenant is just like you: They want to eat out
occasionally, they want to take a jog in a park, and they need to pick up milk
from the grocery store. They want to send their kids to a good school and have
a minimal commute to their job.
So buy in locations that tenants want to
live in, and you’ll find a more stable rental.
Editor: Neha Charan
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