5 Things to Look for in a Rental Property


Profitable Rental Investment Criteria

From budget to location, there is no way to predict the future when it comes to the profitability of a rental property. Making an informed decision about which property to invest your hard-earned money takes time, and there are some key factors that can help narrow down your choices. Take a look at the “Top 5 things to look for in a rental property.”

 

#1: Positive Growth in the Area

It is important to buy investment properties in an area with growth. Strong signs of economic growth, expansion, and a thriving job market will lead to future tenants for your property. Places like Raleigh (NC), Atlanta (GA), and Austin (TX) where there is a high percentage of individuals moving to the area with a strong housing and rental market that will deliver the highest return on your investment should be on your itinerary. Want to learn more about the Raleigh Rental Market? Take a look at

 

#2:Find a Good Neighborhood

The key to a profitable rental property is to do your homework beforehand and find a neighborhood with a high occupancy rate where people want to raise a family. A clean looking residential neighborhood that is inviting and has a positive reputation in the area. While you may pay a bit more to be in a desirable neighborhood, it will help in the long run for profitability and tenant vacancies.

 

#3: Low Crime and Great Schools

A low crime rate and excellent school system will always attract quality tenants because the individuals renting your home will feel safe and want to stay long-term. For one, stable families with kids will be attracted to your rental property, and also an area with less crime has a tendency to have higher property values that grow over time.

 

#4: Find a Property with Amenities

Sidewalks, nearby parks, a transportation system that links all the perks and attractions — these are just some of the amenities that attract tenants to a rental property. It is important to have a good blend of both public and private amenities when finding a rental home.

 

#5: Ability to Make Money

Look for a rental home that will allow the ability to charge enough rent to cover the mortgage, taxes, maintenance, and upkeep. The amount of rent you can charge your tenants is based on the percentage of your home’s market value. A rule of thumb is that you can typically charge between 0.8% -1.1% of the home’s value.

 

#6: Bonus Tip…Get help if you need it!

At Oak City Properties, we have been taking care of rental properties for years! Our full-service property management company will help you find and buy new rental properties to grow and diversify your portfolio. We will also market the property, locate prospective tenants, and show the home to qualified applicants. Once a tenant is placed in your rental property, we will: collect rent payments, assess and collect late payment fees, provide 24/7 maintenance, help with accounting/tax services, and deal with any court appearances in the event of an eviction.

If you are interested in learning more, give us a call at (919) 232-9222 or check out our website.

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