Are you just getting started with buying rental properties and are wondering what are the key things that make a rental profitable? If so, you’ve come to the right place! In this article we will answer this important question and provide you with valuable property management tips.
Tip 1 – Rent
What are comparable properties in the same neighborhood renting for? This is by far the most important question to ask because, your primary goal with buying a Rental Property is to earn cash flow and if the rent won’t cover your mortgage, property taxes and other expenses it’s not going to be a profitable rental property.
Tip 2 – Neighborhood
Learn more about a neighborhood by research it online to inquire about quality of life and crime statistics there because a higher amount of vacancies may tell you that it’s a seasonal neighborhood which is close to a university or that the neighborhood may be in decline due to crime.
Tip 3 – Amenities
Are there shopping malls, decent grocery stores, restaurants, parks and other things to do nearby? Good amenities are important to consider when buying a Rental Property because amenities are also one reason why some renters become long term renters.
Tip 4 – Jobs
Who is hiring nearby? Are most of the area jobs seasonal, restaurant or hospitality positions in the Central Valley.
These are also important questions to ask because when someone settles in an area they will also have to work there too and if they can’t afford to pay their rent due to lack of jobs the renter will have to ultimately look elsewhere for jobs and move if their job is far away from their rental.
Tip 5 – Schools
Last of all, but most important, what are the quality of the schools in the area? This question is important to ask because, you could ultimately be renting to families with children or a couple who is considering starting a family
Get Professional Property Management In The Central Valley
To learn more about buying a profitable rental property, or to speak with us about getting property management in Modesto, contact RPM Central Valley today by clicking here to connect with us online or calling (209) 572-2222.