If you are planning to buy an investment property and rent it out, you want to be very careful about the one that you choose. There are a lot of things to consider and choosing badly can cost you a lot of money. Below are five things to consider when you are looking for an investment property.
School Districts
One of the first things that you should consider, especially if you are marketing to families, are the schools in the area. If you are going to buy a family sized home, you want to make sure that the school district that it’s in is a good one. Whether you keep it as a rental property or you fix it up and sell it, if it’s a family home having good schools around is a must.
Crime Rates
Another big consideration when you are searching for investment properties is the crime rate. You want to check out how much crime is in the area. The local public library or police station should have some accurate statistics for crime in the neighborhoods. Check out the vandalism rates and the rates for petty and serious crimes. You also want to know if criminal rates are declining or rising.
Job Market
Areas with more employment opportunities are more likely to attract tenants. The BLS website is a good place to start or the local library. If you’re seeing announcements about a huge company moving to the area, lots of people are going to be going there and will need places to live.
Amenities
Go through the neighborhood and look for things like gyms, restaurants, movie theaters, parks, public transportation, and more. Think about the things that renters are going to want. You also can go to the City Hall and see if there is promotional literature that tells you where the best mixture of private property and public amenities is found.
Number of Vacancies & Listings
If the neighborhood has a lot of listings, this could mean that it’s in decline or its cycle is seasonal. It’s important to find out what it is. No matter which it is, high rates of vacancy will force landlords like yourself to lower their rates, so they attract tenants. Low rates of vacancy will let you charge more.
These are just five things you want to consider when you are choosing an investment rental property. They all will help you with selecting the right one and being a successful landlord.
Thank you for taking the time to read our blog. We are always adding new blogs to help landlords such as yourself, so please come back regularly. If you have any questions or you are looking for a property manager, we have plenty of years behind us and we’re ready to help. Give us a call and let us show you what we can do for you.
