Rental property can be an excellent asset for gaining income. Some rental properties can even pay for themselves or offer a profit. However, not all rental properties are created the same. When choosing a rental property in which to invest, there are a few things you should consider.
Location, Location, Location
One of the few things you cannot change about a property is its location. If you are choosing to purchase a property as an investment, you must consider where it is located. The quality of the neighborhood will not only affect the value of the property, but also the type of tenants you will have. For example, if you purchase a rental property near a university, expect to pull from a tenant pool made up predominantly of students.
If you are attempting to appeal to families as tenants, consider the schools in the area. If the schools have a poor rating, this will affect the value of the property. On the other hand, properties located near schools with high ratings will draw families who will pay more. Likewise, few tenants want to live in an area that is high in criminal activity. Be sure to research the criminal activity in an area before investing in a property.
The amenities near a property will also add to its value as well as increase your potential rental income. Convenience is key for most people. If a rental property is located near a mall, gyms, the movie theater and so on, it will draw a large pool of interested tenants. For example, if you want to draw more family-geared tenants, consider look at properties near parks and playgrounds.
Rent Price Point
Because the point of owning a rental property is to generate rental income, make sure you research the rental prices in areas in which you are considering purchasing. If your rental price cannot cover your mortgage, taxes, and other expenses, consider lowering your purchase price point.
When determining your purchase price point, you should also consider your other expenses. Will you be managing the property, or hiring someone to do it? If you are going to pay a property management company, factor that into your rental price point to ensure you are not losing money.
When hiring someone to help you with your rental property needs, consider the services offered by Checkpoint Screening. With an extensive range of background check services as well as a quick online rental application and lease generator, Checkpoint Screening can help make your job as landlord a little easier.