5 Qualities to Look for When Buying a Rental Property

buying a rental property

Did you know that there are almost 50 million rental units in the United States alone? Investing in a rental property is one of the best decisions you can make in the current economic climate.

You may be wondering about rental property investments and how to buy a rental property. Here are some tips for buying a rental property that will bring you a great stream of income in no time.

Check Crime Rates

You will not be able to attract good tenants if your rental property is in a bad area. Thanks to the internet, you can easily check the crime statistics in the area of your rental property through the library or public resources.

Sometimes crime rates in an area will fluctuate due to a variety of factors. You can see if there is a police presence in the neighborhood as well. For some of the best information on criminal activity, there are many watchdog sites that have other details.

Get an Inspection

If you decide on a rental property that you want to invest in, you should fork out the money to get an inspection done. That way, you can pay a little bit to see if there are any major problems that could cost you a lot more down the road.

Your inspector may point out problems with the rental property that can be easily fixed. Sometimes buying the rental property and doing some simple renovations can actually increase the property value by quite a bit, allowing you to charge more for rental fees.

Calculate Property Taxes

When you factor in your regular expenses for rental property investments, you need to factor in property tax rates. Location plays a huge role in this, as more urban and metropolitan areas tend to have higher property tax rates overall.

You can use the property taxes to determine how much rent you will charge your future tenants. For instance, if the market rates coincide with it, you may even be able to ask for more rent to cover property taxes if the amounts are higher than you expected.

Scout Out the Location

Location is one of the most important considerations when thinking about rental property investments. You want to make sure that it is close by to amenities such as shopping, banks, grocery stores, and other places that your tenants might need to access on a regular basis.

You can also check out the job market in the area to see if it will present employment opportunities in the future. This could potentially bring the value up on your rental property investments.

Buying a Rental Property Should Be Easy

When buying a rental property, you should not have to worry about whether or not it will be prosperous. With these features, you should get the best deal around on your rental property investments.

Want to learn more about investing in a rental property and getting your business going? Take a look at our site or contact us today for answers to all of your questions.