Venturing into the world of rental properties can be a daunting task. There is plenty to consider when buying rental property and even more to consider when it comes to managing it. Despite these challenges, investing in real estate continues to be one of the best ways to create stability for your money in the long-term. If you are thinking about entering the rental market, it’s important to work with an experienced agent who knows not only what property is available, but also the nuances of neighborhoods. With over two decades of experience in real estate, I’ve matched investors with rental properties that align with their goals time and again and can lend you the expertise that you need in order to find success in real estate investment. To get you started, here are a 3 ways to ensure success when buying rental property.
Pick the Renters First
As you begin to think about investing in rental properties, it is best to start by thinking about the type of renter which you would ideally like to occupy your properties. Some investors prefer short-term, higher-dollar renters that may be just moving to the area and looking for a place to settle while they look to buy a home of their own. Others are happiest with longer-term leases and more income stability that comes with renters who are looking for a home. Whatever your ideal renter looks like, understanding who you’d like to rent your property to will help you to select neighborhoods and properties that are most likely to attract those types of renters.
On this note, it is important to keep in mind that it is illegal to discriminate when you receive applications from those who would like to rent your property, but you can select neighborhoods which already attract the kinds of people you are looking to find and increase your chances that those types of people will view and apply to live in your property.
A home in the country may seem like a quaint and cozy option, but most renters are looking for convenience and amenities. By selecting a location that is closer to conveniences like groceries, entertainment, highway entrances, and medical facilities, you’ll increase foot traffic during the application stage and enhance the appeal of the property. Beyond stores and facilities, consider commute times to popular businesses and central areas of your region.
Locations that are a short drive to work in addition to conveniences make a big difference in how renters view the property.
Quick Listing Turnover
When you purchase a property with the intent of renting it, you have to balance the cost of your investment with the time that the property will remain vacant between tenants. Popular neighborhoods will come with a higher initial price tag, but can demand higher rent and achieve lower vacant days per year. Once you know about how much you are willing to invest, discover which neighborhoods in that price range have high occupancy rates by both touring the neighborhoods looking for ‘rent’ or ‘available’ signs and chatting with neighbors who live in the area.
These are just a few of the areas that you should be thinking about as you prepare to enter the real estate investment market and purchase your next rental property. By far the best way to prepare and enter the market wisely is to partner with a real estate agent like me who can bring decades of experience to discussions and decisions. Call me at 336-575- 7249 or email at Ellen@Ellen-Dudley.com to get started talking about your purchase of your next rental property.