If you are looking to enter the residential rental property business for an additional stream of income, you may be nervous about purchasing your first investment property. Do you know what attracts renters? If you have ever rented yourself, then you have experience in what renters prefer and expect. Most houses are rented by families who don’t want the financial burdens of ownership, or who are new to an area and looking to settle in before they buy a home. The team at Real Property Management Advisors can help answer any questions you may have during the purchasing process. Here are few suggestions from the pros:
1) Look for homes no older than 15 years. This will help keep down maintenance costs and save you money in the long term.
2) Look for homes located away from busy streets and with fenced yards, as they are generally more attractive to renters.
3) Residential investment properties should be located in neighborhoods where property values are appreciating and have at least 3 bedrooms and 2 bathrooms. This does not unnecessarily limit your potential tenant pool, and also allows you as the owner to charge a higher rent.
4) Consider the proximity of the property to things people need and/or want: Schools, public transportation, shopping and dining.
5) If the property is in a HOA, there may be fees for violations and signage and parking rules. Be sure to identify what the HOA codes are and how you will enforce them with your tenants.
Remember that the decisions you make during the purchasing process will affect you for years to come. The property type you choose will affect the potential tenants you attract, and how long the property stays vacant. These are important things to consider as you begin your journey into the residential rental property industry. By making smart choices today, you and your Central Texas property management team can secure positive investment returns.
If you are considering purchasing residential investment property in Austin, Cedar Park, Round Rock, Pflugerville, Leander, Georgetown or anywhere in Hays, Travis or Williamson Counties, contact Real Property Management Advisors to learn how we can help.
This content is provided for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. Readers should consult with licensed professionals regarding their specific circumstances.
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