Excited about buying a vacation rental property for the first time? The journey of investing in rental property for beginners can be interesting and be challenging at the same time.
While you are looking forward to earning a huge profit, there are a lot of factors that you have to consider.
A successful rental property is not an overnight event. It requires your time, patience, hard work and commitment. That said, these ten attributes of a prosperous rental property is strategic management for real estate investors that you can rely on.
Good Location
Location is by far the most crucial factor in grooming a desirable rental property. Any tenant would love the idea of living in a place that offers safety, comfort, and convenience. An excellent location directly affects the price, vacancy rates and resale ability of your rental property.
Great Condition
Make sure that your prospective property is in great condition otherwise, keep looking for better options. Note that a property that requires a lot of work in repairs, restoration and maintenance will eat up your future profit.
Do the math first to ensure that you will not break your savings that much.
Private Parking
If possible, purchase a property that has private parking. If your rental property is in the heart of the city, expect tenants (especially corporate professionals) to look for it to avoid the hassle of parking on the other side of the street.
They are willing to shell out extra money just to have the convenience of their own parking.
Safe Neighborhood
Every tenant does thorough research of his desired rental house, and a secure neighborhood is one of his top priorities. As a landlord, you might consider installing security features of your property like alarms and fences. If you choose to install a security system, do not pay for the monitoring.
Nothing beats having a peace of mind in a relaxing and quiet environment.
Accessible Amenities
It is ideal if your property is available to prime spots like malls, hospitals, churches, schools, taxis, trains and buses. Your tenant chose your place for this reason- its short distance to the necessary amenities and facilities.
That said, he will be able to save time and money and increase his productivity on other things.
New Renovations
Did you know that bathroom and kitchen renovations bring a sizable return of income? People love home renovations as they feel special whenever they see new hardware in the bathroom or a fresh kitchen sink.
These projects need not be expensive; just make sure that the newly installed items are durable and reliable.
Enough Closet Space
If you have a small property, make it up by having a spacious closet space. This way, you are giving your tenant ample room for storage of his treasured items.
Note that a small home with limited closet space will not attract your potential tenants.
Outdoor space
If your rental home is situated in an urban area, have a private balcony or a tiny backyard. This touch of relaxation and recreation to your tenants will allow you to charge a higher rental fee.
Outdoor space is like a breath of fresh air especially for a tenant who lives a busy lifestyle.
Rental Income
Determining the rental income is important as it directly impacts the cash flow of your real estate investment. The rental income should be aligned with the price of the property in that the rental income should be higher to make up the property price and the expenses.
Accommodating Landlord
The big truth is, all tenants wish for a wonderful landlord who is cooperative on the former’s concerns. An ideal landlord or property management company is one that listens and understands the needs of his tenants and would act fairly and reasonably.