Rental properties are a source of fortune if well invested in. A good rental property should consist of the major must be of good condition at a prime location suited with the right amenities for the comfort of its tenants. Many tenants consider a lot before settling down. They want to ensure their comfort and security come first. Investors and homeowners should therefore keep their houses in the most desired conditions to win tenants' hearts.
Location
Don't just invest in a rental property without thinking of the future. What might happen in that locality in the next few years is something you should think about. Are you going to lose that panoramic view that your tenants enjoy/ or will there be more developers around soon to create discomfort for your tenants?
Location is a prime factor not only for investors but tenants. You must ensure that the property is in a good prime area where you can access all the services required for you and your extended family.
There is a lot that narrows down to location;
Security
Take time to survey where you intend to stay to check if there is or was any history of criminal activity. You want to ensure a steady peace of mind and not worry about the worst that might happen to you. Have a chat with people staying around before deciding to move. You can contact the local authorities since they are in charge and have a vast idea of everything happening around you.
Taxes
Taxes on property differ with location. A high-end neighborhood is likely to pay more taxes than a simple neighborhood. Make sure you can keep up with tax duties over a long time. High taxes should not discourage you from living in your dream house. If you like the place and you foresee your future spending more time there, then go ahead. Your local municipalities have the exact figure you are likely to pay.
Schools
School will affect the value of your property over time. If you have to invest in a family house, consider having the best schools. This will save you time and money.
Neighborhood
The neighborhood you invest in will determine the type of tenants you will likely attract. For instance, if your property is by a beach, most of your tenants will be tourists. You will likely receive more tenants during long-term holidays and fewer tenants throughout the month. Students are more likely to rent out if your property is near a college. However, you are likely to make less money when they are on holiday.
Some neighborhoods will likely discourage you from purchasing a property for rental conversion by imposing unreasonable high amounts of taxes and rules.
Growth potential and cash flow
A rental property should bring you a fortune, and there is no need to invest in a property that doesn't seem to grow in value over time. Less cash flow means less growth potential.
Market trends
Consider what might happen in the future. Any development plans like roads that could potentially hurt your property
The rent you impose should be reasonable to your clients. Make sure your average income will be able to help you cover your mortgage, taxes, and other expenses.
Locations with new employment opportunities are likely to attract new tenants.
