If you’re thinking about investing in rental property, it’s important to consider factors that may impact your profit margin. Owning rental property can be profitable, but also challenging. Before you make a purchase, think carefully about the property and the tenants.
Renters today want property features and amenities that add value to their lifestyle. Most renters work and some have children, so they are looking for features that will enhance their way of life and make things easier for their busy schedules. Although many renters hope to own their own home some day, the cost of buying a home makes it difficult. Many people have great jobs that allow substantial mortgage payments, but they don’t have the required down payment to get approved for a home loan. Many millennials want a more mobile lifestyle with less financial obligations, so they prefer to rent rather than own. Although this is a plus for you as a rental property owner, you may find that young millennial renters prefer to move more frequently. If you want to invest in rental property, here are some important tips to make your investment more successful:
Choose a Good Location
Less than five percent of renters work from home, so location and commute time to a job is an important factor in choosing a rental. Most renters want a daily commute time of 30 minutes or less each way and a location where they can walk to nearby shopping areas, movie theaters, coffee shops, and restaurants.
Provide Good Amenities
Most renters look for good amenities such as central heat and air, upgraded appliances, good lighting, clean facilities, and adequate parking. Before putting up a “for rent” sign, contact minneapolis cleaning services to do a thorough cleaning on floors, windows, sinks and bathtubs, and kitchen and bathroom counter tops.
Check Out Your Tenants
Tenants who can’t afford the rent, have previous evictions, or complaints from other landlords should be avoided. Owning a rental property comes with many challenges and expenses. Bad tenants will only add to those challenges and expenses and create unnecessary problems for you and your rental property.