Investing in rental property can be a great way to increase monthly income to save or spend. Unfortunately, not everyone knows how to invest in rental homes, which is where finding a good real estate agent comes in handy. A real estate agent who knows the market well will be able to help you determine which rental property fits your needs. Knowing how to determine a good rental property is the first step on your journey to becoming a landlord.
The first thing you want to consider when investing in rental property is how large of a property you are prepared to lease. While you may be interested in a large apartment building due to the number of potential tenants, you must keep in mind that such properties are often high maintenance and expensive. If you are not planning on hiring a building manager, you may want to stick with smaller buildings, like single-family homes or duplexes, as all of the repairs will be your responsibility.
Working with local real estate agents becomes especially important when you are deciding where to look for rental properties. Neighborhoods that are rapidly developing will be in higher demand than those with run-down businesses and empty storefronts. Your real estate agent will be able to give you information about crime rates, school districts, and property taxes in most neighborhoods. It is better to buy a fixer-upper in a good neighborhood than a fancy house in a less saleable area.
While it may be less important than size or neighborhood, consider the distance from your house to the rental property. Repairs will be easier to resolve if you live nearby, and tenants are more likely to keep the home nice if they expect you to be in the area frequently. It will also be easier for you to resolve any issues the tenants may have in an efficient and stress-free manner, which will improve your relationship and reputation.
Investing in rental property can be complicated, and these tips are only the beginning. Be sure to talk to your bank about financing to be sure that real estate investment is right for you. For more information, read this website.