Your Key To Success: Top Features Of A Profitable Rental Property
When you are looking to buy rental or income properties you need to consider a few things. Owning property is a tough business and the field is peppered with land mines that can obliterate your returns. Here we’ll take a look at the top 10 things you should consider when searching for the right rental property.
1. Great Neighbourhood
A community with great Neighbourhood is a desirable rental area for many families.
When you have found a good home property near a school, you will want to check the quality of the school as this can affect the value of your investment.
Jobs are also important to a community, and therefore are important to rental markets. Jobs affect everything from supply and demand, prices, and disposable income.
Such as parks can impact about everything concerning real estate. Depending on your investing profile, neighborhoods with parks, malls, gyms, shopping centers, and public transportation can make a huge difference in the profitability of your rental income.
No one wants to live next door to a hot spot for criminal activity. Go to the police or the public library for accurate crime statistics for various neighborhoods, rather than asking the homeowner who is hoping to sell the house to you.
6. Building Permits and Future Development
If there are many new condos, business parks or malls going up in your area, it is probably a good growth area.
7. Low Vacancy Rate & High ROI
Vacancies can greatly impact the profitability of rental property.
Pricing power is important to property rental companies. If charging the average rent is not going to be enough to cover your mortgage payment, taxes and other expenses, then you have to keep looking.
9. Low Taxes
Rental property is generally more profitable in areas where the overall tax burden are lower for residents and investors.
10. Insurance Premiums
Insurance is another expense that you will have to subtract from your returns, so it is good to know just how much you will need to carry.
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