Not everyone with a rental property investment is making as much money as you might imagine. There are some buildings or properties that just do not attract tenants as much as they should even when they are well maintained and cared for. It is therefore imperative as an investor that you choose your rental property well so that you can make money without any hindrances. Here are some of the top features to look out for when choosing a profitable rental property.
Crime – people are always looking for safety. Nobody wants to live in a neighborhood that with a very high crime rate. Also, properties in such neighborhoods don’t bring in much because the rent is charged cheaply. The police will be able to provide you with the statistics of the crime in the area so you can be able to decide for yourself before buying the property.
Employment opportunities – a profitable rental property is one in an area with a good and powerful job market. People are attracted to such places and also the people living there are able to meet their rent obligations because they have jobs. If you invest in a neighborhood near a university, most of the people around there might be students. This means that you will experience shortage of tenants when students are on holiday.
Schools – if you have invested in a family size kind of rental property, then you should consider the schools around. If the schools are of poor quality or if there are none then it might mean that most of the people living around there might not need the housing you are providing. This can lower the cash flow that you get from your investment.
Amenities – a good place to invest in is one with all the necessary amenities in place and near to the people. Look for a place that is close to shopping stores, malls, gyms, healthcare facilities, roads, parks, movie theatres, banks, public transport and many more. The amenities preferred will vary from one tenant to the other but the more amenities there are around you the better.
Too many vacancies or properties available for sale – when you notice that the area you want to invest in is becoming some sort of ghost town it might be because people don’t prefer living there anymore. If you find that most people are selling their property and there are many vacant rental properties in the area then it might not be the most profitable place to invest in.
While at it you should also remember to consider the future development plans for the area. Is there any new university setting up site there? Are there any high rise apartment buildings coming up? Are there any malls coming up? All these factors will affect the profitability of your rental property investment.
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