5 Tips for Investing in Single-Family Home Rental Properties
Single-family homes are by far one of the most highly sought after rental properties on the market. As an investor looking to buy a few new properties, it is important to know what to look for. Here are five tips to remember in the process when looking through single-family home listings.
1. Check the crime rate in the area.
You should check crime rates first if you are investing in rental properties. People are not typically as interested in homes in high-crime neighborhoods, and if they are, they may not be so willing to pay what you are asking for rent.
2. Look for homes that are easy to market.
Some houses are so easy to market; they have curb appeal, they are in a decent neighborhood, and they are close to good schools. If a home has things about it that are not so desirable in the eyes of tenants, it can make it harder to market the property when it is vacant.
3. Find houses that have a versatile design.
The more flexible a home is, the easier it is to rent it out. For example, a home that has a spare room that can be used as either a fitness area, an office, or a spare bedroom can be quite attractive for prospective tenants. If you make note of the spare room in your listings when you put a home up for rent, you can list it as either having an added bedroom or having a spare room.
4. Try to find pet-friendly homes.
Most families these days do own a pet, so it is nice if you can offer a pet-friendly home as a landlord. It is much easier to rent pet-friendly homes than it is to rent homes that do not allow pets. Single-family homes that are pet-friendly will usually have hard-surface floors, fenced yards, and other features that are inviting for families with animals.
5. Pick properties that are easier to maintain.
Whether you are providing the maintenance on the rental property or you will be requiring the tenant to do so, you are going to need a property that is easy to maintain. Properties that have a lot of mowing, landscaping, and trim work can be viewed as too time-consuming to prospective renters, and they can detract from your profits if you have to handle the maintenance yourself.
If you need more help finding your next home, contact local real estate agents.