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When you’re considering becoming a landlord, it’s not quite as simple as sticking a pin in a map, purchasing a house or apartment, installing a tenant and sitting back to count your money every month. Although we all wish that were true… You’ve no doubt heard the saying “location, location, location”? It may sound like a cliché, but it’s absolutely true that where a property is situated is one of the most important considerations of becoming a landlord/investor. Rochester, NY, has become one of the most popular and profitable places to purchase a house or apartment to rent out in the country, with astute investors drawn to its continuing growth potential. Here are just a few of the things you should think about when deciding on a location to purchase a house or apartment to rent out for profit, offered as tips by someone with experience in professional rental property management, Rochester NY. Population Growth This is a fairly simple equation: a strong growth in population equals an increase in demand for housing. This is obviously important for potential landlords, because having quality, qualified tenants is the bedrock of your investment. Affordability With this we’re not only talking about the affordability of the purchase price, but also an acceptable standard of living for potential tenants — and that means affordable rent. It’s important to be able to attract a large pool of renters, so there’s always demand and vacancies are minimised, but it’s no good investing in a high-end home in an area that doesn’t suit that demographic and can’t sustain the high rent you’d expect. Local Infrastructure and Type It’s much easier to rent out a house or apartment if it’s in an area that is serviced by a good range of amenities, schools, shops, parks, public transport and lifestyle facilities. You should also do research into aspects like crime rates and demographics, along with the type of property. If you’re aiming to capitalise on the family demographic, for example, there’s no point looking at high density one-bedroom apartments. (This is where it’s valuable to speak with someone in rental property management. Rochester NY has some suburbs that are a better proposition than others for particular demographics.) A Buoyant Employment Market This is a slightly less obvious aspect to research, but it can be quite illuminating and very important. Of course, everyone wants to find the next real estate “hotspot”, but understanding the employment market can provide extremely valuable markers for a far-sighted investor. Burgeoning employment opportunities (through proposed developments and thriving industries, for example), bode well for the investor, as jobs mean growth for both infrastructure and population. A little research can go a long way. Potential for Capital Growth There’s more than one way to make money through an investment property and capital growth is an important consideration. It’s certainly not a guarantee, though, and for a house or apartment to increase in value over any number of years, it depends on numerous factors. The location is obviously most important, but you should also research land size, population demographics, the local real estate market, economic activity, recent sales in the area, and the general state of the market (growth is cyclical, so the old “buy low, sell high” adage needs careful analysis). It's easy to become overwhelmed by everything you need to know and consider if you’re thinking of dipping your toes into the property market. And while it is absolutely a bonus to get a handle on the basic aspects, for a new investor the most sensible course of action is to take on the services of professional rental property management (Rochester NY has numerous reputable companies, but always do your research). By consulting with these experts before you sign anything, you’ll be able to make use of their valuable insight into the real estate market. Author Plate Danny Torres is from Torres Turn Key, a property management company in Rochester NY with more than ten years’ experience providing a holistic service for both domestic and international investors. When it comes to rental property management, Rochester NY investors can rest assured they are in good hands. The city is one of the most exciting places to invest in both commercial and residential properties and the company brings together a host of experience and specialist knowledge to build long-term relationships and create maximum value and benefit for their customers.
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