A rental property investment is unlike any standard flip. It is contingent on numerous key factors, all of which needs to be investigated properly prior to signing the dotted lines.
Some least fortunate investors find themselves to be frozen due to analysis paralysis- leading to zero deals done. Or, the very least, they end up paying more bucks than necessary on a property which they’re heart and soul isn’t into that much!
So, what are the key takeaways when picking your rental property which actually proves lucrative? As per notable real estate agents serving in Adelaide, below lies some clear tips.
Start with the Location: – The location is certainly one of the crucial factors of procuring a rental property along with the best time to choose for that location. Sit down with a property agent and sort out the neighbourhood suited for all your needs.
Also, determine the timeline for possessing the property and whether you will be self-managing it or let property management to provide you with superior tenancy income.
Cash Flow & Possible Growth: – If there is no probable cash flow, it makes no sense to invest in a rental property. Ask yourself how it will take to get your property to get into a rentable condition? If it does already, associate with a professional property management agency to handle your future potential growth.
Remember the whole point of this is to make money and so it would not be a bad idea to know where real estate values are heading. Try and be informed on every matter. Take help from a real estate agent too if needed and hope for the best!
Condition of the Property: – This is where most investors tend to sabotage themselves. Example- regardless of the ill condition of the house, proper cosmetic improvements can always improve its rental prospects. Most new investors regularly underestimate how a property condition can influence their investment. Some even run away with the thought of investing in good property investments.
You need to decide- is it going to take $4000 and 5 days to get the property completed and rented or $ 100,000 for 6 months? Take the help of real estate agent who have ample experience in what tenants look in a rental property. And they will happily share that knowledge with you and even help suggest you in making those profitable cosmetic improvements.
Crime, School & Job Prospects: – Other than the aforementioned aspects; you also need to check for prospects of schools, jobs and the amount of criminal activity in that neighbourhood.
If there are no schools nearby, employment opportunities are rare, and the rate of vandalism, petty crimes or other untoward activity is high- then all this can hamper your chances of procuring tenants as well as the value of your investment.
No of Vacancies & Listings: – If the neighbourhood consists of high listings, then it could suggest that the seasonable cycle could be on the decline. Either way, high vacancy means you need to lower rents to attract tenants, and low vacancy implies high rents.
The bottom line is that every neighbourhood consists of good rental properties. All it takes is extensive research, keeping expectations realistic and being patient.
To get quality listings, it is recommended to opt for best in class real estate agents in Adelaide who have a fair idea about the market trends.