If you are looking to move into investing in property in the new year, you may have already decided what type of property you want to buy and which sort of area you want to work with. However, there are a lot of factors which affect which property is right for your rental and how many tenants it will attract. Today we are going to talk about some of the things you need to consider before buying a property to rent out.
As if you were buying your own home; the neighbourhood is a huge factor which will decide the house prices and the demand for tenants in the area. You want to try and avoid looking for house or Apartments for sale in a neighbourhood which is a full of crime or one which doesn’t have great transport links because although they will be cheaper for you to buy, they will be harder to sell on or rent.
If you are looking more into buying houses and renting them out, you need to stop and think about the children. What schools are in the local area? Are they rated well? Families will take this as a high priority issue when looking for a home, which means that you should too.
If crime is high in any area, tenants won’t want to live there. If you need to check what the crime rate is for a local area you can either look online or visit the police station and discuss it with them. You will want to be looking at robberies, vandalism, serious crimes and anything recent. Make sure that the area also has a good police presence.
One of the most important factors which will affect tenants moving into your properties is the job market. If there aren’t many jobs in the area, families won’t want to move over the country and leave their old jobs for it. Try and find a place that either has a lot of jobs itself, or it has transport links to a commutable city which is full of opportunities.
Look for gyms, cinemas, malls, cafes and other amenities within the area which people will want to have access to on a daily basis. When people are looking for a new place to live they will often check out what there is to do in the area at the weekend as a family and how close the local shops are in case they need to grab things for dinner.
If you are looking into rental in the area, make sure you check out what the average ppm is for properties similar to the one you plan on buying. Make sure that it is a sustainable income for you and whoever you are working with.
Certain areas of the world often suffer from natural disasters such as hurricanes. Make sure that you are in an area which either doesn’t suffer from these disasters very often or at least has the necessary protection. Insurance companies will charge you much more to live in a high-risk area.
In the property
Now that you have scouted out a neighbourhood and checked out the other necessaries in the area, you can begin to look at the property itself. If you are looking for a beginning investment the best option for you is a small family home which doesn’t need much work doing to it. If you don’t have that much money to plough into the property then its best to leave the larger projects until you are more confident and experienced in the market.
You will want to property to be structurally sound with no work needed on the roof, walls or windows and doors. This will leave you with only needing to rework the inside of the property.
When you are looking to decorate a property, the easy option is to stick to wooden floors throughout most of the home and white walls. This will attract more tenants because it will make the place look and feel bigger and clean. It is also easier for them to see themselves living in the space if it is like a blank canvas.
If the property has a garden, you will want to only do some basic work on the space in the back. Make sure that the patio or paving is level so it isn’t a trip hazard, get rid of any weeds and then mow the lawn. You can add a plant pot or two if you like but it is really up to you how much work you want to put into it.
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