Signs of a Profitable Rental Property

3 Things to Look for in a Prime Rental Property
November 1, 2016
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December 1, 2016
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At Americas Housing Alliance, we’re dedicated to providing top notch service to those interested in turnkey real estate or investing in rental properties. We have all the expertise you’ll need to exit your rental situation with a significant profit.

Over the years, we’ve picked up all the most important market indicators regarding rental properties. We know what sets great properties apart from mediocre ones, and how to spot the little signs before anyone else. What are some of the key ingredients that go into a profitable rental property?

Neighborhood

The quality of your neighborhood will mean a lot – both for the types of tenants you attract and the frequency with which you’re forced to fill vacancies. If you buy in a neighborhood near an elementary school, for instance, you’re likely to find a lot of parent-and-small-child families. If you buy near a major university, you’ll likely have lots of college-age tenants.

In addition, some of your neighborhood indicators could go a long way to determining your long term profitability. Elements like crime, schools, and various amenities like parks and public transit will all play a role.

Job Market

If you buy in an area where employment opportunities are growing, there’s a good chance you’ll see a high volume of tenants and very little time with unoccupied rental space. There are several online resources for rates of employment in given areas, and you should try to stay ahead of the game here – if you pick up on a trend before the market at large, you could get in before rates go way up.

Property Taxes

Not all properties have the same level of tax, and this is something to clarify with the town or city’s assessment office. High property taxes aren’t always a bad thing, and in fact can be a positive indicator in some situations: They can mean the neighborhood is a great location where tenants remain for long stretches.

Future Development

A given city or town will keep public information on any new development that’s been zoned, and the savvy investor might have a look at this information before buying in that area. An area with several new developments scheduled could signal a prime location for you to get in before a boom, and on the flip side, an area with little new development could mean the opposite. Don’t get too caught up here on either end, though – new developments can also raise prices of surrounding properties, and could create some competition for tenants.

Ready to learn more about turnkey investment or any other part of our service package? Our expert brokers at Americas Housing Alliance are standing by.