What to look for in your first rental property.
If you are looking to buy a rental property, it is important to know what type of property and in what location will gain the most reward.
- Nearby Schools: The school districts can be the biggest deciding factor for your renters if they have children. If you have found a good property rental, check the quality of the school. If the school has a poor reputation, prices will reflect your property’s value poorly.
- Check Your Neighborhoods: The quality of the neighborhood and demographics living within the neighborhood will reflect the types of tenants you attract and how many free vacancies you will experience. If you buy your rental in a neighborhood near a university, chances are your tenants will mainly be students and you will experience quite a few vacancies during the summer months.
- Property Taxes: Find out what the property taxes are in the area you are looking to purchase your property rental. Make sure you are aware exactly how much you will have to pay in property taxes. If the taxes are high, this may not necessarily be a bad thing if the neighborhood is an excellent place for long term tenants.
- Employment Opportunities: Finding a rental property in an area with growing employment opportunities will attract more people, meaning more potential tenants. Find out if a new company has recently moved to the area or is planning to move to the area. Workers will flock to where new company’s start sprouting up, meaning more potential tenants.
Price Of Rent: Find out how much the average rent is in the area you are looking to buy your rental property. If charging the average rent in that area will not cover your mortgage, taxes and other expenses, it might make sense to look elsewhere to purchase your rental property.- Insurance Expenses: If you are looking to purchase in an area prone to earthquakes or flooding, make sure you can afford that extra insurance expense on a monthly basis.
Of course for all your real estate buying and selling needs, call The Lawhead Team, “Because Two Lawheads Are Better Than One.”
