Most people know the old mantra, location, location, location.
So, it usually isn’t a stretch to open a blog post about figuring out where you’re going to put your investments when looking into rental properties. Above and beyond any other considerations you may have- location is everything. In order to really see a good return on that investment, you have to find properties with location based advantages. If you do a little searching around, the tips for renters will give you a pretty good idea what they want and how they’re finding out about these rentals. Here are a few of the key ones that your potential tenants are looking for:
One of the biggest reasons that people will be drawn to certain neighborhoods and repulsed by others? Safety. People want to know that they’re going to be able to have peace of mind and not have to worry about crime. You could find a real diamond in the rough in those “bad neighborhoods” at a steal of a deal, but your returns are probably going to not be that great on it. When you’re looking into the neighborhood, always think about how you’d feel moving your family there. If you wouldn’t, it’s probably not a great investment property.
Access to the Interstate or Good Public Transit
One of the most steadily growing areas of interest are the outskirts of town. For people looking for something a bit quieter, but not quite wanting to go rural, this is ideal. These locations are also typically a bit less costly than those in the more popular proximity to the business districts. Additionally, you can usually sweep up great deals on properties that have easy access to public transportation, which is also a big draw for young professionals.
Access to Decent Schools or Business Districts
Not every great neighborhood offers a quality school option. If you find a property that is closer to a highly ranked school or college, it may be a safe bet. This is particularly true if you’re looking into purchasing rental homes, rather than multi family units as these are typically rented by families. Additionally, business district properties, though usually higher priced are worthy investments because professionals of all stripes prefer homes in close proximity to areas where jobs may be plentiful.
Of course, people also want to be close to the services and amenities they need or want. Shopping centers, hospitals, restaurants, and other close considerables can also be a draw. When you are asking yourself if a property would be a good rental investment, ask yourself if you would pay to live there. Once you’ve determined you would, then, take a look at the market standards and then, after all that’s taken care of: you get to make sure the places you’re looking into are suitable.