Renting out a house can be a very reliable way to make a secondary income. As long as you find good tenants, the house will only appreciate in value as it will be well looked after. Buying a property to rent or lease is a good way to invest your money as there will always be a market for people needing homes. In a crisis, you could sell the secondary property and make back the money you spent plus a profit.
When you are looking for a suitable property, make sure to look from the perspective of someone who wants to live in the home. It may be cheaper for you to buy a rundown house, but you will not be able to find many reliable people who will want to live in it without major remodeling investments from your end. Look for a nice home in a great neighborhood that you would want to live in as well. This will ensure that you get the best value for your money as well as attract the right people to be your tenants.
You want a neighborhood with lots of families and parks because the most reliable tenants are parents with children and well-paying jobs. If the neighborhood is easy to commute from to the nearest city it will make for a good investment as well. Many city dwellers want a nice quiet suburb to return to after the hubbub of the city. Take the time to do the research and understand what makes a rental property a good investment. Knowing what you need will make the process much smoother and you will find yourself as a landlord in no time.
Are You Landlord Material?
It is a good idea to evaluate yourself and your skillset to ensure that you have what it takes to be a good landlord. No matter how attractive your rental property is, if you cannot be a good landlord then you will not be able to keep tenants for long. Are you handy? Do you know how to fix common household issues?
You could hire professionals for plumbing and electric issues but this can cost a significant amount depending on the issue. If you are not able to do the fixing yourself, then you may want to wait till you are able to pay a handyman to take care of your properties.
Look into the Property Tax Rate
Property taxes vary depending on the neighborhood. Picking an undesirable location in a nice area will not lower the amount of tax either. It might be a good idea to look into the tax rates of the areas you like and then talk to anyone you know in the neighborhood. They will be able to give you a better idea of the area and whether it is worth the cost of paying higher taxes.
Consider the stability of the township as well. A well-managed township with a good local government is more likely to keep its tax rates level, but a township with financial issues may raise its property taxes unexpectedly. The pandemic has already exposed which towns and cities across the country are willing to protect their citizens and which will take advantage of them. This should help you to pick the best area for your interests.
Look for a Good School
You do not want to buy a property that is too close to the school, but you do want to assure any potential tenants that their children could easily walk or be dropped off without too much hassle. The convenience will sway many working parents who want to ensure that their children go to a good school but do not have the time in the mornings to take them to school every day.
A home that is easily accessible to the school bus route is also desirable and allows you to offer a home that is further away from the noise a school zone generates. A property like this is a great investment for reselling as well. The likelihood of finding interested buyers is higher because of its proximity to a good school.
Naturally, you want a home in a low crime area as everyone wants to feel safe in their homes. But, finding a township that has never experienced crime is impossible so look to see if the neighborhood is actively involved in making the area safe. Neighborhood watch groups in a well-patrolled area will make many families very happy to lease your property.
Look into the proximity of the property to local parks and malls as well. People will want the convenience of ordering food or going out to eat without having to wait a long time or drive far away. Many public amenities within a short distance are an attractive feature in a rental property.