Owning a home is a goal most people work towards, but with the cost of living, it’s becoming more challenging to buy one. So prospective homeowners are choosing to rent instead. Renting is not just for tenants but can be an excellent way to generate revenue if you’re in the market to purchase a property. But before you choose a rental to buy or to live in, there are a few key factors to consider.
A few key factors to look for in a rental property include the location, taxes, the property’s condition, and the neighborhood. If you want to rent a home, it’s also essential to check the property’s history and choose one with outdoor space.
Purchasing or renting a property is a big decision. Buying a rental is a substantial financial investment, and evaluating the house thoroughly before you purchase it is crucial. If you’re looking for a place to rent, you’ll want to look at all your options and consider the rental’s affordability and selling points.
What To Look For In A Rental Property?
Finding the right house to rent can be challenging. There’s lots to consider, and sometimes you end up living in a terrible rental. The property market is competitive, especially if the home is in a good location, and while you’re in the process of applying for the home, someone else could easily snatch it up.
It’s essential to be proactive and look out for a few things that make a good rental. Whether you’re looking to buy a property to add to your investments or just looking for a new apartment, there are nine key factors to look for in a rental.
Look For A Good Location
Location is everything. If you’re looking to purchase an apartment or house to rent out, the best locations are where there is high demand and an increasing population size. Areas with amenities like:
- Schools
- Grocery stores
- Malls
- Parks
You’ll also want to consider supply and demand. Pick a location where there aren’t too many rentals, but they are in high demand.
Location is just as crucial if you want a place to rent. You’ll want to choose a place that caters to your needs. If you need a school for your children, is this close by? Is this house or apartment close enough to your family? Is it a safe place to live? These are just a few things to consider when deciding on the location of your home.
Consider The Property Taxes
Homeowners pay property taxes to their local tax authority. The amount payable depends on the house’s value, and each state has different tax requirements. If you buy and lease a building, you will be liable for this type of tax. You’ll need to consider this because it’s a monthly expense.
If you are a tenant and do not own the building, you won’t need to worry about paying this tax.
Scope Out The Neighbourhood
Safety and security are important to any homeowner or tenant. Scoping out the neighborhood and researching crime statistics can help you better understand the environment. Some communities are ideal for families, while others are more suitable for retirees. By researching, you can choose a neighborhood that suits your lifestyle and complements your budget.
If you’re purchasing a property in a specific area, you’ll need to do an extensive neighborhood analysis that considers the following:
- Employment rates
- Rental rates
- Average income of homeowners in that area
This will give you a better perspective on whether to invest here.
Consider The Property’s Condition
When looking for a property, you must consider its current condition. Is it a newly built or renovated home? Are there things that haven’t been adequately maintained or fixed? You want to avoid homes that need work or have potential hazards.
Properties that aren’t looked after are also a good indicator of the type of landlord you’ll have, and ideally, you want to lease from someone who keeps up with the maintenance of the house.
If you are purchasing it as an investment, then a fixer-upper may be worthwhile, but it’s also worth noting that renovations often cost a lot more than purchasing a building already in good condition. Conducting a property condition assessment before buying a house is advisable.
Check If There’s Appliances
You may not have all the appliances for day-to-day living when looking for a property. Many tenants look for homes that are fully furnished with everything they need. This makes it easier for them to move from their old rental into the new one and is generally a more attractive option compared to an unfurnished building.
If you’re renting out a space, consider the advantages of including a few appliances. This is an excellent way to charge more for it while attracting more tenants.
Consider The Property’s Outdoor Space
Backyards, balconies, patios, and pools are attractive to tenants. If the rental has some outdoor space, you’ll be able to charge more for it, and it may offer something that neighboring houses don’t have, making your listing even more competitive.
Backyards are also great if you’re renting a home and need more space for your pets to run around or if you have kids.
Take Into Account The Age Of The Rental
Most people avoid very old homes. Generally, they haven’t been adequately maintained and need work. When choosing a house to rent, you’ll want to consider the property’s age. While maintenance remains the landlord’s responsibility, you don’t want to live in a space with constant wear and tear and things that need fixing.
When you’re purchasing a rental, it’s better to buy a more modern one. This way, you’ll avoid spending lots of money on repairs and have peace of mind knowing that the maintenance will be minimal.
Conclusion
If you’re purchasing a rental, you want a good return on investment, and that’s why choosing a well-maintained property in a good location is a smart purchase. If you’re the lessee, you’ll want to find a modern rental that’s furnished and in a good part of town, so you won’t need to worry about your safety or potential hazards due to the lack of maintenance.