What to Look for in a Rental Property?
What to Look for in a Rental Property?
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Jul 26,2022

What to Look for in a Rental Property?

Owning rental property is a lucrative venture that only gets better with time. Most investors going into real estate underestimate the risks involved and overestimate the return on investment (ROI). If you are looking to expand your rental portfolio, several vital factors must be considered before purchasing a rental property. A property management company can help with the preparations, guaranteeing significant returns and a diverse portfolio. 3 Options Realty has an experienced team of experts with extensive industry knowledge ready to help you make the right decision when investing in rental property. Here are some tips to help you look for the best rental property in your desired location.

Figure Out Your Investment Costs & Budget

As property values hit an all-time high, the appeal of investing in rental property has increased drastically across the country. However, like other investment opportunities, you need to be prepared for the possibility that it might take some time before it pays off. Rental properties have more demand and require more upkeep which can be overwhelming if you are not prepared for these costs. Make sure you have enough money to cover required insurance, mortgage payments, and upkeep between renters. Property managers are trained to assess your financial situation to determine if you have sufficient liquid assets to cover expenses for the first twelve months in case of an emergency.

Turnkey or Fixer-Upper

Whether learning from the internet or watching TV, buying a fixer-upper is never as easy as it looks. While this is usually a cost-effective solution, it comes with a fair share of risks, especially if you aren’t familiar with construction costs and timelines. These rental properties have lower prices than turnkey ones, but that doesn’t mean they are cheaper. Potential investors should account for the cost of home improvement projects and the extra costs that pop up when you tear down walls. Whether you are going for a fixer-upper or a turnkey property, ensure a thorough inspection is conducted to ensure any issue is discovered and addressed. For those with experience flipping houses, fixer-uppers are a viable option. First-time property owners should start with turnkey property to avoid the stress and inconveniences of renovation.

Location

Once you’ve established a budget and know the type of house you want, it’s time to scout for the ideal neighborhood to invest in. We believe that location is crucial and determines the type of tenants you get. If you buy renal property near an institution or university, chances are you’ll attract students or young professionals. Most investors prefer B-Class neighborhoods with a mix of homeowners and renters. "Up and coming" locations are ideal for first-time investors, as these areas will likely rise in value over time.

Check the Amenities in and Around the Property.

Renters are always looking for neighborhoods close to their desired amenities, such as parks, schools, shopping centers, and transportation. Other attractions that can help you attract tenants are services like healthcare, theaters, restaurants, and gyms. Available amenities in any given area help create a lifestyle portfolio and tell a story for the neighborhood. You can use this to your advantage when creating marketing material to attract tenants.

Contact us today at 3 Options Realty and access the tools to help you make more informed decisions and attain the bottom line, profits. Please schedule an appointment with our property management experts to kick start your rental ownership journey on the right foot.

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If you have been rummaging through web results for “property management companies near me,” then you are at the right place. 3 Options Realty’s property managers in Atlanta are experienced and trained to deliver top-tier service. Call 3 Options Realty to speak with a friendly representative today to learn more about our property management & real estate services. We are ready to take your call.

Buy, Sell & Rent with 3 Options Realty

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We use professional market research to determine fair-market rent, and we use broad market advertising to reach a large audience. Our agents will also help you prepare your property and skillfully present your property. Prospective tenants will undergo comprehensive interviews and background screening before we negotiate with them the rental agreement using our proprietary, attorney-reviewed forms.