4 Things to Think About When Buying a Rental Property as an Investment

1. How Many Repairs You Must Make

The key to finding a good investment property is looking for one that needs minor repairs. Properties that need repairs often come with a lower price tag. If you can easily flip the property, you can rent it out for more than you paid for it. However, some repairs are expensive and are not worth the investment. You must carefully consider the repairs needed for a potential rental property before you decide to buy it.

Cosmetic problems are relatively easy and cost-efficient to fix. Installing new flooring or giving the walls a fresh coat of paint can easily transform many properties and increase their value. However, you should take care to avoid major renovations such as plumbing, wiring, or foundational problems.

2. Which Amenities Are Most Appealing

Every home comes with various amenities. If you want to make your property appealing to potential renters, you must provide them with the amenities they desire most. Some people desire a new kitchen or an outdoor space for entertaining guests. Others look for homes with spacious closets and plenty of storage space. It's important to think about these amenities when renovating your property to make it more enticing for potential renters.

According to one survey, however, the most desirable amenity for many tenants is the ability to have pets. 90% of tenants prefer to rent homes if the landlord allows them to own pets. You can drastically improve the desirability of your property by allowing tenants who have pets in the home, but if you are worried about the animals potentially damaging the property, require a deposit.

Whether you choose to manage your rental property yourself or hire someone else to do it, having a dedicated person to oversee the investment is important. Your tenants must be able to contact you when something is wrong with the property. If you do not want the hassle of staying in constant contact with tenants, it's best to hire a property manager who can oversee all major problems. This practice allows you to reap the benefits of having a rental property without much of the stress that comes with it.

4. How to Market the Property

People must know about your rental property before they can lease it, so learning effective marketing techniques is essential for spreading the word about your investment. One good idea is to design a pamphlet to give to potential renters. You can include pictures and important information about the property. There are many templates available online, so you can easily customize your pamphlet template of choice with an eye-catching design and unique logo.

There are many ways to advertise the availability of a rental property. If you prefer not to create a pamphlet, you can try:

•         Using word-of-mouth advertising

•         Listing your property online

•         Using social media to share pictures of the property

•         Making local realtors aware of your property

If you choose the right property, a rental home can be a great investment. Think about these four things to make your investment property profitable.