Tips For Choosing Your Future Rental Properties
Are you thinking about investing in rental properties, but aren’t sure where to start? It can certainly seem like a big endeavor! But have no fear, there are some basic things to consider that can help you identify properties that could be good rental investments.
Buy It Rent-Ready
While in recent years purchasing fixer-uppers has gained steam, it doesn’t always work out the way you are hoping. It can definitely increase the value of a home and the profit you may make, but it is easy to get in over your head. If you can’t necessarily call yourself a construction expert, it may be best to purchase a home that is ready to be rented out and start making some of your money back. Purchasing a rental that is rent-ready can save some headaches and get your investment paying off faster.
Location, Location, Location!
This might seem like an obvious one, but it’s a huge advantage if you find a property that is located in an area that people actually want to live. Is it centrally located? Are there restaurants, shopping centers or activities nearby? Would you want to live there? Luckily, the Valley has some great areas to choose from for rental properties. Considering the kind of person or family you want to rent to is important as well. Do you want to rent to college students? Maybe Tempe or Scottsdale would be a good place to look. Prefer families? Check out Mesa, Gilbert, or even Goodyear. Actually, Goodyear has recently been named #7 on a list of the top 50 places in America to live!
If Possible, But Your Rental Already Rented
Finding a quality tenant can be difficult. In fact, it is often one of the main reasons people use Property Management Companies. If you purchase a rental that already has someone living in it, you can save yourself time and money right away. And what could be better than that?
Make Sure It Is Rentable
Did you know that some places aren’t even rentable? Make sure you check to make sure the property is rentable if you are purchasing a condo, town-home, or something in a co-op building. They may have restrictions on leasing it out. Make sure you understand the guidelines on renting the unit, if there are any, before purchasing it. If there are restrictive rules on renting the rental property, it may make it more work or cost than it’s worth.
Think Like A Renter
There are some keys items a family may consider before renting a home, including location, space, amenities, safety and extras. If your goal is to rent your house to tenants, consider all of the aspects of the property that a potential tenant would. Try to put yourself into their shoes and think about if the property would be desirable for renters. This will also allow you to find quality tenants faster and being in more monthly rental income.