Six outstanding factors to consider in choosing the right rental property were already discussed in the last three articles namely: "How To Turn Rental Property Into Profit," "How To Search The Right Rental Property," and "Searching For The Right Rental Property."
From the real estate analysis of those last articles, you've learned that each factor is of equal importance with each other. To complete the set, here are the last four factors that you should not ignore when searching for the right rental property. You may start chewing now the nuggets of this helpful information:
You need to secure building permits and anticipate future development in the area. Visit the planning department of the municipality and check the new development that is coming in the area. Please watch out for those new establishments that could affect the price of your investment. Watch out for competitors like new housing sites.
Consider the figure of listings and vacancies in the area. The unusual high figure of listings in a particular neighborhood can be seasonal cycle. Figure out first which it is then buy in. Can you cover for any fluctuations in vacancies? Like listings, vacancy rates help you recognize success in attracting tenants. Here's the catch for this: high vacancy rates might force you to lower rents to get more tenants. Low vacancy rates will push you to raise rental rates. You may want to visit getprivynow.com to check those listings and vacancies on your potential area.
It's important for you to know the average lease in your target area. Privy offers exceptional products that will help you project the enough amount of rent you need to charge to your tenant. Since rental income is your bread and butter, you need to determine if the average rent in the area will cover all your expenses. If not, better not to go on with the plan.
The last factor to consider is how prone the area to natural calamities. If the area you will find is prone to flooding for example, you will pay extra insurance and that eats a lot on your returns. Check this website to see if your target area is prone to such disasters