Investing in rental homes can be a smart move if you make smart decisions. When buying, remember your decision today will impact how you must manage the property going forward. If you’re still in the purchasing process now, you can make decisions that will determine how long your property stays vacant, how many applications you attract and the type of tenant who will be interested in the property.
Successful leasing and management is important, and it starts with your buying decision. Here are some of the things to consider.
This is real estate, so you need to think “location, location, location.” It plays a critical role in the amount of work it takes to manage the property. Not all markets are created equal. Look for neighborhoods with lower vacancy rates, higher rents and places where values are appreciating. Local expertise is especially important. You’ll need to know how good the schools are and how close the property is to public transportation, shopping and amenities.
Different cities have different rules and ordinances for landlords. Some towns have heavy fines for violations, where others are less stringent. Experienced investors know this makes a critical difference. HOAs also have their own codes and rules. You’ll need to consider potential fees for HOA violations.
Property details can make or break the success of a landlord. With more families seeking to rent long term, look for single family homes that can support a family’s lifestyle. That includes at least three bedrooms, two bathrooms and a fenced yard. Fewer customizations are better, and you want a home that’s less than 15 years old. That will keep your maintenance costs down and attract tenants. Avoid smaller, quirky layouts and yards without fences. Busy streets can also turn off prospective tenants.
If you are in the process of purchasing a rental property, consider your investment from a property management perspective. We are happy to help, so contact us at Real Property Management West San Fernando Valley if you have any questions.