Are you interested in investing in rental properties? If so, it’s important to know what to look for. Not all rental properties are created equal – some are more profitable than others. This blog post will discuss the top five features of a profitable rental property. By knowing what to look for, you can make sure that you invest your money wisely and see a good return on your investment.
Let’s take a look at these features
1. Neighbourhood
One of the most important factors to consider when looking for rental property is determining whether or not the area is “rental friendly.” What does that mean? It means that the neighborhood should be stable, with little turnover in homes; it also means avoiding crime-ridden areas, industrial, high-traffic, etc. Certain areas may be more rental-friendly than others, but that is something you will need to do your research on.
2. Property Taxes
Taxes are always expenses that do not show up on the bottom line of possible rental income. That is why some may integrate an MTD-compatible software and start Making Tax Digital for Income Tax Self Assessment for landlords to help them submit their tax updates accurately. Rather they are a structural cost within the property itself. The best way to reduce your tax expenses is to ensure you receive all the expenses available under law for rental properties.
Expenses can help lower your taxable income, which will, in turn, lower any tax bill you receive for that year—or avoid one altogether. Besides that, you can earn some extra profit if you trade on Bitcoin Code.
3. Crime
A well-tended rental property will have less crime than an unmaintained or unoccupied one. Make sure the neighbourhood is safe. Search online for crimes statistics in the area, or ask a police officer for their thoughts on crime risks in the neighbourhood. Check to see whether or not you must go through a property management company for someone to be on-site.
As nice as it is to have them do the work, companies may charge well over $100 per month just for this service, so if your rental property remains vacant, consider hiring an outside company that only requires monthly inspection visits.
4. HOA Fees
You can often save money by investing in an area with high HOA fees. These dues might include landscaping upkeep and pool maintenance for neighbourhoods with pools or snow removal services during winters. They’ll also generally secure entrances and limit public access at night, so visitors don’t overpopulate the street.
By limiting activity on the street from passers by or those who may vandalize your property, HOA fees often make the neighbourhood better off.
5. Future Development
The most crucial feature that you must consider is future development. If the area is going to explode with new businesses and families, it will be profitable for an investor to purchase a foreclosure or short sale in that area. One must consider the future development on a larger scale, such as looking into transportation possibilities, new construction projects coming up nearby, etc.
The Bottom Line
Investing in rental properties can be a very profitable venture. Those looking to get into the business should look into the number of bedrooms and bathrooms, finish quality, basement development (or lack thereof), nearby schools and shopping centres, traffic patterns, future development possibilities, and more to make an informed investment decision. With proper research done upfront, a good profit can be realized relatively quickly.
