If you’re shopping for an income property with the intention of renting it out, there’s a lot to consider to ensure that you’re making the best type of investment. We highly recommend seeking advice from a realtor to help you make the best decision, as extra precautions must be made when choosing a property for the purpose of investment. Here are a few key features of a profitable rental property to look out for to help with your search.
The type of neighbourhood you choose to invest in can massively impact how much rent you can charge. The quality of the neighbourhood may also attract a certain type of tenant and length of lease. For example, a property close to the University campus will likely attract students and a high turnover, while a rental property in the city will attract young professionals who will likely stay for a few years.
Especially if you’re buying a condo in the city, it’s essential that you explore the surrounding area and assess the amenities that are close by. Parks, grocery stores, gyms, and public transport are all incredibly attractive to buyers, so look for a rental property that is close to the key amenities.
Fees and mortgage costs
While fees and mortgage costs are inevitable with properties, this cost needs to be weighed up against the monthly rent that you can bring in each month. If your monthly costs are higher than what you can charge in rental, it may not be a great investment. Research rent prices for other properties in the surrounding area or in the building to estimate how much you may be able to charge.
If you’re looking to invest in a condo or apartment in a high-rise, it’s likely that the building will have certain amenities, such as swimming pools, gymnasiums, lounge rooms, saunas, etc. If the building has great amenities, this can affect how much you can charge for rental of the property for and can increase your profits.
Looking for more information on features of a profitable rental property? Get in touch with us today for more real estate tips and advice!