Investing in the property market can be tricky. If you’re looking to get into residential real estate, then you will need to do some research into the rental market before you look to purchase. Understanding what makes an attractive rental property will help you choose the right property for your investment purposes.
Today, we’re going to have a look at what makes a good rental property.
Type and Age of the Property
Houses with backyards appeal to family-friendly people who want a nice home in a good locality. Likewise, apartments near educational institutions like universities and colleges appeal to students who want to live close to them.
Modern apartments in residential localities with medical and educational facilities fetch you more rent. Even families look to rent apartments if yours has all the facilities nearby.
Another important factor to consider is the age of the property. Newly built properties have more demand than older properties as the latter need more maintenance. If you have an old home, then make sure all the structures and fixtures are working properly before giving it for rent. In that way, you can expect more rent.
Property Features
People look to have more features when they rent a home like garage space, living space, flow of natural light, landscape views, etc. Additional bathrooms and a designated office space give you a better rental price.
Moreover, if your home has a good flow of air and light in all the rooms, then you can expect more rent and good tenants. Make sure that your home has the facilities that you would look for in a home, and you can fetch the desirable amount for your rental property.
Quality of Neighbourhood
Families with small kids and pets prefer a neighbourhood that gives residential vibes. People want a house that has better security and provides safety to their families. On the other hand, bachelors and students prefer apartments that have better access to public transport, shops and hotels.
Properties that are near educational and medical facilities also appeal to tenants who have elderly and disabled people. Check the features and quality of the neighbourhood that your property has and analyse how much rent you can put on it.
Nearby Amenities
People with transferable jobs look for properties that are near schools and colleges if they have small kids and teens. Also, houses that are near gyms and sports facilities appeal to students and bachelors who like to have fun during their weekends.
Additionally, properties near pubs and restaurants attract working people who like to have parties on Friday nights. Check what amenities your property has and put a price on it that seems desirable and reasonable.
Property Taxes
If your house is still under mortgage, you can pay it through the rent you get. It can cover your home loan repayment and other property expenses. For the benefits you get on property taxes, it’s better if you consult a financial advisor so that you know how your rent can be used.
Strength of the Rental Market Area
If you are an investor, you might think of investing in your house to get rent money that covers your repayment costs, strata costs, maintenance and insurance. To get a consistent rental income, you should know the strength of the rental market area. You should have an idea of how profitable your property is so that it covers the property expenses.
Look into the history of similar properties in your location. Have an idea of vacancy rates, average rental yield, etc., to know how profitable your rent can be.
Apart from the above points, make sure your home is in habitable condition with proper plumbing and electric wiring. Ensure the structure of your house is strong and functional. If not, you can think of house extensions that can improve the value of your property and also help you fetch a desirable rent amount.
