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FEATURES OF A RENTAL PROFITABLE RENTAL PROPERTY

Posted by Remilekun Lilian Durodola on March 16, 2021
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In your search for a rental property to invest in, there are a few important things to put into consideration for better results and profitable returns. 

  1. Neighborhood: be sure to do your research about the area and ask vital questions such as; the crime rate in the area, because this could affect your rental rate and the kind of tenants you will attract. Is it a unit or building in a busy area, or a quiet neighborhood? This will help you decide if to make it a residential or commercial rental.
  2. Property tax/Land use charge: as the case may be, the charges on the property depend largely on the target area. High property tax isn’t always bad, as long as the area attracts long-term tenants. This is also a factor when deciding the rent charges. 
  3. Schools: for residential properties of 2-3 bedroom apartments, the chances of attracting families is quite high. Hence, you should consider a property that has good schools nearby. This can also affect the overall value of your investment rent-wise and if you eventually decide to sell it. 
  4. State of the property: a perfect property with no repair issues will be expensive. If you’re getting a property that needs some work to be done, at a cheaper cost, then make sure you’re prepared to have everything fixed before putting it up for rent. This will increase the value of the property and also give you the leverage to charge higher. 
  5. Job availabilities: areas with higher job opportunities tend to have more people in need of rental properties. Do your findings to have an idea of job availability in the area you’re about to invest in. 
  6. Amenities: It’s important to know the proximity of the area to restaurants, malls, theaters, and public transportation. If you’re looking for but a luxury unit, check the amenities of the building like a pool, gym, or parking spaces. 
  7. Planned development: check in with the town planning department in charge of the area, to be aware of development plans, or any plans the area may be subjected to. These may include; more properties, more jobs and may also mean more housing competitors coming up. 
  8. Real estate listings: check local listings. Find out the reasons for high and low vacancies in the area. Low demand for housing means high vacancy and this may force owners to lower rates. A low vacancy may let you put a little premium on the rate. 

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