If you want to make more money in the real estate business, rental properties are often the way to go. Rental properties are quite marketable to people living in urban areas. When you invest in any rental properties, it is good to receive high returns on your investment. You can achieve this by getting the most profitable rental properties. Such properties have special features to attract many potential tenants, and so it’s a good idea to note some of the features to look for in profitable rentals.
Here are 8 features of a profitable rental property.
- Valuable property
- Good neighborhood
- Secure and safe
- Social amenities
- Favourable taxes
- Areas without natural disasters
- Number of vacancies
- Future developments
The primary purpose of investing in rental properties is to expand your investment portfolio. So, when looking for a rental property, it is best to find out if it’s valuable to invest in. Investors must know the value of the property first before investing in one. If it is worthwhile to own, then it shows this is a good investment to consider.
It is critical to know the tenants to deal with to enjoy significant revenues from the property. When you get a rental property in high-end places, it is easy to find tenants willing to spend money renting it. So, it is sensible to look at the type of clients most of the local properties will attract. If they seem favorable to exclusive clients, this is an indication it is worth investing in one.
Most tenants are looking for safe environments to rent. It is a significant thing to know about your preferred rental property. When doing your research, it is wise to know the crime rate in that neighborhood. If the crime rate is low, the rental will have more tenants ready to live there. It will put your property up in the market, thus the ability to invest in more profitable areas.
A rental property located in areas with social amenities is very demanding to the tenants. People want to run errands in local places, and they will search for properties near social amenities. Hence, investors need to recognize gyms, restaurants, or medical facilities around the potential property. If these amenities are available, it is effortless to look for the right tenants.
In some areas, the government has put favorable property taxes for investors to enjoy. It is vital to recognize when looking for profitable means for your property. If the government has excellent tax relief programs for such investors, it acts as an incentive for you. The main point is to know more about property taxes and how you can enjoy them. It is often a good idea to consult local financial advisors for more guidance.
Even though natural disasters happen without prior warning, it is vital to own a property in a region with fewer cases of these disasters. Properties in risky areas will cost you more in rebuilding it and paying for the insurance coverage. Disasters such as floods or storms will affect your investment goals. It is paramount to keep off properties located in places prone to such disasters. But, if the property is in safe places, it will offer good returns.
If looking to gain more on your investment, you need to have tenants occupying your rentals at all times. Some properties have high vacancy rates, and this cannot be good for rental property investors. Real investors need to look for properties with low vacancy rates before making big decisions about these investments. It is necessary to research the local listings through your real estate agents.
Property in areas with many development projects is very marketable to the tenants. When you see a property located in major upcoming projects, it is a sign that marketing will be easy. It is also a good sign that the job market is changing, and the demand for properties will go up.
Once you identify these features, it is reasonable to approach skilled pros to help find exceptional rental properties in the region. For example, you can have an agent from Buyers Agent Sunshine Coast handle all your rental property deals.
About the Author:
Ray is a sought after thought leader and an expert in financial and money management. He has been published and featured in over 50 leading sites and aims to contribute articles to help novice financial planners. One of his goals is to impart his knowledge in finance to educate and help ordinary people create and achieve their financial goals.
*This is not financial or investment advice. Remember to do your own research and speak to a professional advisor before parting with any money.