Tips for making money with rental properties

You may have heard about how today’s economy is turning real estate into a buyer’s market, but do you know how to use this to your advantage? This article has tips on how to approach buying real estate in a logical way that will ensure you get what you want at a price you can afford.

Purchase of rental properties

1. Find a location of rental properties you want to invest in that are surrounded by local amenities like parks and shopping centers. In a big city, a property near public transportation is especially profitable. The more things to do that are close to the rental property will attract more potential renters and allow you to turn a profit faster than a rental property that is in the middle of nowhere.
2. Understand utility settings in rental properties. If you are considering a multi-unit rental property, it is important to pay attention to the way the utilities and heating system have been set up. Take note of the number of gas, water, and electric meters either inside or outside the home to determine how many services are connected to the property. If there is only one connection, keep in mind that you will most likely have to include utility costs in your rent payments. You may also want to make a call to your local zoning commission, to find out if any major utility changes would be necessary. There could be significant costs involved in splitting or combining services and you will want to know this ahead of time.
3. Learn to attract good tenants. If you are going to buy rental properties, it is absolutely imperative that you carefully market your units in such a way that you attract the best tenants possible. Marketing is important and you should pay attention to how other owners market their properties, particularly those with low vacancy rates.
4. When purchasing real estate to use for rental properties, be sure to do a careful neighborhood assessment. Look at the cars parked on the street. Old cars can tell you a lot about the neighborhood the property is in. Trash on the sidewalk or worn houses can tell you that the neighborhood is not that great and at what level you can expect to rent the property.
5. Look for rental properties in student areas. A college or university neighborhood is a great place to look for a rental property to buy. In most cases, the vacancy rate will be minimal, and most of the time students pay rent for the semester or even the entire year in advance. The only drawback is that some students only want 3 month leases; however, if you establish a relationship with the school’s housing office, chances are you won’t have any trouble finding tenants.

Research potential properties before you buy. If you are considering renting a property, consider the following features before you sign the closing documents.

One of them is sustainability. What is the condition of the property and how much maintenance will it require in the future?

The second thing to consider is the location. Especially with the property you plan to rent, location can make all the difference. You need to make sure your tenants can get where they need to go and that the property is close to commonly used retailers and service providers.

The third thing to consider is the property’s area median income. This will not be the same as the physical location. You want to remember that any low rent area will be worse than any high rent area. You should also keep in mind that location concerns are not as high of a priority for high-rent areas. Location issues become more of a factor in lower-income areas.

This article will help you take advantage of today’s real estate buyer’s market. Be sure to follow the tips to get the most out of your real estate buying experience. You can get what you want, at the price you want, with the benefits that buyers can get with the state of the economy.