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If you own or operate rental properties, then you’ll know that not every property is created equally. There are many different factors that can affect a rental’s profitability and the potential return you can make from one. From the location to the included amenities and even how you manage the property, there are certain things you should be aware of that can help boost your returns. In order to get the most out of your investment, you’ll want to make sure your property incorporates these key features. Continue reading to learn more about the features that make for a highly desirable rental property.
Location
The most important factor in any real estate deal is the property’s location. That’s because location can affect so many aspects of a real estate investment. Not only does it contribute to a property’s value, but it also plays a huge part in the demand level for your property. With rentals, higher demand means you can charge more for rent, and make a better return.
Ideally, your property should be in a safe neighborhood with access to amenities like parks, restaurants, and shopping centers. There are also certain markets across the nation experiencing high demand for housing, and making an investment in one of these markets can lead to great returns for you as an owner. Some great examples of these rapidly growing markets include Nashville, Charlotte, Atlanta, and Tampa.
Property Characteristics
Besides location, there are certain characteristics of a property that will lead to a more profitable rental investment. Generally, the more up to date your property is, the more desirable it will be to renters. If you plan to remodel, you should look to incorporate modern design trends like open concept which are very popular among home buyers and renters. The upgrades you can make to a property, like newer heating/AC systems, updated plumbing, and modern wiring, will instill confidence in potential renters which can lead to more demand for the property as well.
In terms of the types of properties you should be looking for, single family homes will be more desirable since tenants won’t have to share the building with others. Small and simple properties also tend to do better; large properties cost more and require more monthly maintenance, which limits your potential pool of renters.
Tenant management
Having favorable management conditions is a key trait that can make a property more desirable to tenants. If your tenants know they are in good hands they’ll be more likely to stay at your property for a longer time. First and foremost you should be readily available to your tenants, whether by call or text, and you should be quick to respond to maintenance and repair requests. There will certainly be larger issues that spring up which aren’t as easy to handle, but you should be making a reasonable effort to keep the property in good shape for your tenants. Another good idea is to conduct regular, in-person inspections of the property. Once a quarter should suffice, but in many states you are legally required to provide notice to your tenants so as not to invade their privacy. The amount of notice you will need to provide varies from state to state, so be sure to familiarize yourself with landlord-tenant laws in your particular state and municipality.
RCN Capital
The easiest way to maximize returns on a rental property is to find a trusted lender that can get you the best leverages and rates. RCN Capital lends to real estate professionals, commercial contractors, developers & small business owners across the nation. We provide short-term fix & flip financing, long-term rental financing, and new construction financing for real estate investors. RCN Capital also has flexible and competitive loan options available. Are you looking to purchase or refinance a long-term rental property?Connect with us today.