These days there are more people than ever looking to rent an apartment rather than buying. For the savvy real estate owner building a portfolio of places that can be rented easily is a no brainer as the return on investment is higher than some financial schemes. Knowing what makes a good rental home is vital to ensure it is quickly rented and can be filled if the tenant leaves. Here are some suggestions on what works in the land of rental real estate.
Think Like a Tenant
Many rental homes are used by people with a limited income who plan to stay in a neighborhood for a given amount of time. Renting makes sense if someone is trying to get a feel for the area before buying real estate locally or for those working on short-term contracts. Tenants look for good amenities in a neighborhood such as grocery stores, laundromats, cafes and connections to public transportation. Having these amenities close by will get that rental home filled quickly. For a larger apartment aimed at a family check out the schools and colleges nearby for their ratings. Buying a place to rent near a college or university is another good move for attracting tenants.
Go For What You Know
Having detailed knowledge of a neighborhood is useful when looking for rental property and many landlords have portfolios within a few miles of their own homes. If you live close by it is easier to keep an eye on the building to ensure it still looks good and the tenants are not annoying the neighbors. With in-depth knowledge of a neighborhood, buyers will know which streets are best when it's time to buy and they can also be first to know when a property goes on the market. This can put you ahead of the game as some of these apartments change hands very quickly. It is always worth keeping informed about new developments in an area as these can affect a property in a positive way such as a new commercial venture coming to town. Prices can also go down when bad news hits such as an increase in crime rates, so it is important to keep ahead of developments.
The Right Property Attracts the Right Tenants
When you check out a property for rental purposes there are some things that will help you get more rent and others that are a downside. The number of rooms is important because some tenants will appreciate their own bedroom, but will share kitchen and bathroom facilities to save on the price of an individual apartment. Having two bedrooms or more will appeal to families. Yards should be very low maintenance so that a tenant can be relied upon to keep the space tidy. While many tenants will appreciate some outdoor space, not all have a tendency to gardening and the property can soon lose its curb appeal if the lawn and trees are not maintained. In areas where there is a need to have a car, off-street parking is a bonus. Looking out for these bonus features makes a property even more appealing when it comes to renting it out. Tenants generally want low maintenance but pleasant properties for rent.
Is the Price Right?
It is very easy to get carried away by the perfect apartment for rent but do make sure you stay in budget. This will ensure you get a good return on investment when the rent is paid. Looking for smaller homes in wealthier areas, or properties in up and coming districts can all buck the trend when it comes to renting. Don't forget to factor in how much a building will cost to renovate and decorate for rental, as some places need a lot of work that eat into profits. Do make sure that if you need to, the property will be easy to sell at a profit.
Finally, renting out apartments is hard work but an enjoyable way to make money from real estate. By checking out the movers and shakers in the property market near you, a portfolio is easy to create.
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