What Are The ‘Deal Breakers’ To Look For Before Investing In A Rental Property?


Are you planning on buying rental property in Central Valley California for the first time? If so, you’ve come to the right place!

Before investing in your first rental property, there are several ‘deal breakers’ that you should be looking for that may make you think twice about purchasing that property.

Property Values Are Decreasing

The first thing to be on the lookout for before purchasing a rental property is if there are declining property values in the area where the rental is located. This is important because, if property values are dropping by up to 30%, you should start wondering what’s happening in the area under the surface?

Are property values declining because there’s a lack of jobs? Social unrest? Or all of the above? These are important questions to ask before purchasing a rental property because, they could potentially save you the time, money, and hassle of investing in a rental property which may be more trouble for you than what it’s worth.

High Vacancy Rates

Another potential ‘deal breaker’ to be on the lookout for when purchasing rental properties is a city that has higher than normal vacancy rates.

Since most cities have vacancy rates of 5%, a city that has vacancy rates of upwards of 30% should be cause for concern.

Unreliable Local Government

Last of all, but most important, another deal-breaker that you should be on the lookout for when investing in a new rental property is an unreliable local government.

This is important because, the local government is responsible for ensuring things like the quality of the roads, favorable business climate, and the safety of the citizens who live in the local area.

 If the local government where the rental property is located has a reputation of making promises but not following through with them, corruption, or all of the above, you should be wary of investing in a rental property in this type of location and continue looking for investment properties elsewhere.

Hire A Property Management Company

At RPM Central Valley, we specialize in full-service property management and can save you the time, money, and hassle of managing your investment property yourself.

Some of the wide variety of Property Management Services that we can offer you include rent collection, maintenance, tenant selection, customer service, and more.

To learn more about the property management services that we can offer you, contact us today by calling 209-572-2222, or click here to connect with us online.