You’ll need more than one source of income in today’s economic climate. One of the places to invest your money in is in real estate. However, not all properties can generate the revenue you need to satisfy your needs and wants.
Experts from Bergan & Company and other Denver-based rental property management companies cite the following factors to consider when making an investment.
The area’s quality will affect the occupancy rate and the kind of tenants your rental property attracts. Before making an investment, scout the area personally. Walk around at different times of day; look for the number of shops, restaurants, cafes and other businesses in the area. If it gets lively throughout from morning until night, you’re eyeing first-rate real estate that will provide huge returns.
If there are too many vacancies in the property you’re eyeing and these don’t turnover soon, you might be looking at the wrong real estate. Long-term tenants and quick turnovers are good signs when choosing rental properties. This means that the units are in high demand there might even be a long line of potential occupants as soon as one slot opens. You might not have to invest time, effort and money in advertising.
Rent is the main source of revenue when you invest in rental properties. Review the rents of the surrounding real estate in your chosen neighborhood. You’d want to set a competitive price that isn’t too high over the average. This attracts the right tenants and keeps your investment profitable in the long-term.
The market may be sunny today but may take a turn for the worse in the next few years. It’s important to survey the development of the neighborhood. Will there be new jobs and businesses around? Will there be new transport lines and connections? Will there be affluent people buying properties?
These factors will play a significant role in your decision-making process of investing in property. Take note of these to get good value for money and a high return on investment.