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Getting into Property Management: Four Tips when Searching for Rental Homes for Sale by Andrew Stratton






Getting into Property Management: Four Tips when Searching for Rental Homes for Sale by
Article Posted: 02/05/2015
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Getting into Property Management: Four Tips when Searching for Rental Homes for Sale


 
Business
Are you considering jumping into the rental market? Before you begin looking at homes for sale to use as a rental property, there are several things you should know. This is a major investment that should not be taken lightly. Here are some tips to ensure your success as a landlord.

Choose a Smart Location

The most important aspect of buying a rental house is the location. Choosing an area that is appealing to renters is the first step to successful property management. The area will ultimately determine the price of rent as well as the turnover rate. When looking for rental houses for sale, you need to take into account the things that would be important to you if you were purchasing the home for yourself. Things like a good school district, the availability of public transportation, distance to medical facilities, and a strong job market are all things that attract renters.

Aim for Low-Maintenance Properties

Another thing to remember when looking at homes for sale is to choose one that is easy to maintain, especially if you will be managing it yourself. Choose a solid structure with a simple floor plan. Also, having a yard that is easily maintained is another attractive aspect to renters. Before you buy, you should have an inspector come in and go through the place with a fine-tooth comb. Check the plumbing, wiring, and the roof for possible leaks. Make sure everything is in proper working order when you advertise. If you live far away, you want to make sure you don't have to constantly travel to handle any issues the house may have.

Develop a Solid Financial Strategy

Before diving into a mortgage on a rental, you need to sit down and figure out what your actual costs will be. You will obviously have the mortgage, but there are other costs you need to figure into your bottom line. You also need to account for property taxes, operating costs, and taxes owed on rental income.

Think About Appreciation

To be really smart about your investment, think ahead to the future. Look for a home that has the potential to appreciate over time. If you eventually plan to sell the house, you should have a goal to make more than you actually spent. This will largely depend on the current market, so you will have to take that into consideration. However, if you invest in a fixer-upper and make significant improvements, there is no doubt that you can achieve a decent appreciation rate.

Getting into rental property is a great way to make some extra income, but it should not be taken lightly. When you begin looking at homes for sale, you need to have a solid plan in place before you even step foot into the door. Make the process as simple as possible, and you will be able to attain long-term success.

When looking for a high quality homes for sale in Scituate, MA, visit Coastal Brokerage. Learn more about our services at http://www.coastalbrokeragellc.com.

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