Undoubtedly, the real estate business is highly profitable. But you must choose the right property type, especially when you’re planning to rent the property. This article will talk about a few qualities that you must consider when investing in real estate for rental purposes.
5 Qualities to Look for in a Profitable Rental Property
1. Good Schools in the Neighborhood
Before investing in real estate for rental purposes, you should always consider the schools’ quality and proximity. Because excellent schools always attract stable families and the best tenants to the neighborhood. Besides, your property price will go higher.
2. Low Crime Rates
Tenants usually put a lot of emphasis on the crime rate before renting a property. That’s why before investing in a rental property, you must consider the crime rate of the area. Besides, you should check the statistics of major crimes such as vandalism and rape.
Again, while checking the data, you shouldn’t just look at the overall data of a city or neighborhood. You may find some cities have higher crime rates. But if the crime rate is dropping every year, this means that the situation is improving, and it’s safe to invest.
3. Proximity to Daily Amenities
Let’s admit, nobody wants to live in a place where they will have to travel hours to go toshopping malls, gyms or pubs. That’s why before investing in a rental property, look whether the neighborhood has all the necessary amenities or not.
As today’s generation is more concerned about their health, you should invest in a rental property that has at least one high-quality gym in the neighborhood. When there are all the required amenities in the community, your rental price will go up automatically. Besides, your property will have a higher resale value.
4. Ample Job Opportunities
When there are enough jobs in a certain neighborhood, it’s obvious that people will start migrating to that city. And as a result, rents or property prices will go higher. To check the neighborhood’s job market, you can use statistics from different government websites such as the US Bureau of Labor and Statistics or other sources. If you see that there are enough jobs in the neighborhood, you’re good to invest in that neighborhood. Otherwise, you’ll have to look for other rental properties.
Apart from the statistics, check which big companies are planning to shift to your area. Because when big companies shift to a neighborhood, not only it brings their offices but also a lot of employees and new job opportunities.
5. Profitable Rents
As you’ll be investing in a rental property, the rental price is the key to success. If the rental price isn’t profitable enough, it’ll impact your overall profit as well. That’s why before investing, do some research about the rental price of the property. However, don’t rely on the sellers because they sometimes overprice the rents, and it’ll mislead you. Again, while calculating the rental price, calculate how much rents will increase in the next 5 years, taxes, etc.0