May 19, 2024

Jocuri

Mad about real estate

Things to Consider in Investment Rental Property or Investing For Others’ Satisfaction

Investing on rental property may not make sense to some.  Why would you spend lots of money to basically satisfy others?  If this is how you see investment rental property, then you probably should spend time crawling out of the box and looking at this kind of investing a little more closely and objectively.  By doing so, you would realize that you are not only investing to satisfy others, but you are primarily satisfying yourself too.

After the onset of the global economic crisis, quite a number of families in the U.S. decided to sell their homes since they could not afford to pay their mortgages anymore.  They opted to rent instead and kept the lifestyle they had long comfortably gotten used to.  They may be living in a house they can not call their own, but at least they could keep on eating what they want to and live the life they have always lived.  Besides, they will not need to compute every now and then on how to budget the money left after setting aside the mortgage fee. You see?  The families may have lost their houses, but at least they were able to keep a comfortable, relatively stress-free life.  As to the owners of the residential places these families are renting from, business is certainly good.

Investment rental property is a good thing to engage in especially if you are looking at the future benefits it may bring.  So, if you wish to consider making this kind of investment, here are a number of things you have to consider:

  • Think of your potential renters’ needs – Consider what would actually appeal to most people.  Invest on areas which the general public would think strategic and worth paying for.  You have to consider the neighborhood and the jobs available within the area.  Also check the schools (must be reputable) and places for shopping.  You may also want to consider how near or far they are from churches and hospitals.  Simply put, don’t invest on any place you would not want to live in yourself.  How could you encourage anyone to live there when you yourself won’t do it?
  • Choose the property type – Think of what kind of property you would like to invest on.  Is it a single-family home or an apartment complex?  A single family home may require less starting capital.  However, an apartment complex generates higher income.  You also have to consider the cost of maintaining the property.  Needless to say, an apartment complex is much more expensive to keep than a single family home.
  • Set the reasonable rental fee – After you have had the property inspected and appraised, you should set the reasonable fee for the rental of the place.  This is dependent on several factors like the special features your property offers (like the basic amenities – laundry facilities, cable and internet hookups, parking etc.) and how much is the local listing for the similar properties within the area.  You would not want to price your house so high and let it remain vacant forever.  You would naturally want to be competitive, of course.  Think ahead.  If you could satisfy your tenants for a longer period of time, then you could enjoy earning from them for as long too. Now, isn’t that satisfying?