Are you interested in purchasing a property and renting it out to make a profit every month? If so, there are some things that you should keep in mind as you shop for the perfect rental property. By carefully considering these items, you can ensure that you make a good investment and get the most from your new rental home.
Research the Value of the Property
One of the first things you’re obviously going to want to think about before purchasing a rental home is the value of the property. Of course, you want to be sure your property is worth the money you’re going to pay for it, but can you also rent it profitably? If you plan on purchasing a condo or home by taking out a mortgage, you’re going to want to crunch some numbers and make sure you’re going to be able to rent it out for more than your mortgage will cost every month. As Zillow points out, you’re also going to want to take real estate taxes into account and find out how much utilities will cost you on average. These are all factors that will determine how profitable your investment will be.
Check the Condition of the Property
If a home is in great condition and doesn’t need much work done, you don’t need to worry about this item too much. But if you walk into a potential rental property and immediately notice that you will need to do a lot of work to it, you’ll probably want to look for a different property. A little bit of work shouldn’t scare you off – after all, nearly every home can use a little TLC or improvement work. If the home has more serious problems – either obvious when viewing or after having the property inspected by a professional inspector – there’s a good chance that you’ll be pouring money into the home to get it to rentable shape, meaning more upfront expense and a longer delay before you can start making money from renters.
Consider the Location of the Property
Location is always important when you are purchasing property, and it’s especially important when it comes to rentals. You want to make sure your property is located in a desirable neighborhood, with access to local conveniences and amenities like shopping, entertainment and transit. You also need to think about your property in a long-term view – do you think the neighborhood will still be popular in five or 10 years, or are nearby commercial developments or industrial projects impeding on the peace and quiet – and desirability – of the location. If you aren’t completely sold on the location, prospective renters are likely to balk as well, so you should steer clear of committing to purchase that property.
These are just a few of the things that you will need to consider before purchasing a rental property, but there are many other factors to think about as well. The team at Berkshire Property Agents can help you find the right rental property, meeting your budget and your needs and working to find the most appealing neighborhoods for attracting tenants. Call us at 413-528-6800 today to start the search for your rental property.