There is a lot of work to be done between the time you first think of going into rental property and when you actually buy your first property. There are many decisions you will need to arrive at on your own; decisions that will, in more than one way, influence the success of your business. This can be challenging particularly for the beginner investor. Rental property ownership is a rough field sprinkled with land mines that can annihilate your profits. There are more costs to think about besides the monthly rental property mortgage cost.

Carry Out the Property Search on Your Own

Whereas you can employ the services of a realtor in the purchase of your first rental property, it is best if you searched for the house on your own. Real estate agents often bring redundant pressure to buy sooner instantly locking you out on better deals. If you will be managing your own property, it is a good idea to settle on a property that is not far from your place of residence. If you contract the services of a property management company, you will not need to worry about the proximity of your investment.

The Right Neighborhood for a Rental Property

The type of neighborhood you choose will greatly influence the caliber of tenants you attract as well as the frequency of facing vacancies. For instance, if your rental property is by a university, you will enjoy high demands when students are in session and experience vacancies come summer when majority of the students go home.

Affordable Rental Property Taxes

Property taxes are one expense that novice rental property landlords often overlook when planning their business. Often times, property taxes are built into the escrow of your rental property mortgage. Different locales have different property taxes. As a landlord who will be seeking to make a living out of your business, you will need to establish how much will go to paying taxes. High taxes are necessarily not a bad thing as they are often related to good neighbourhoods that attract long-term tenants. You can obtain info on taxes from the local authorities or other homeowners.

Schools Make a Rental Property More Desirable

Having a school close to your rental property is a good thing especially if your tenants have or plan to have kids. The quality of the school, however, needs to be accessed as it can greatly affect the value of your rental property. While getting tenants for a property near a school is easy, a school with poor reputation will considerably lower the value of your investment when the time is ripe to cash out.

Low Criminal Activity

No one feels safe in a neighborhood where crime is prevalent. Someone who is seeking to sell a property to who might withhold this information just to make their sale. Go to the public library or police to obtain accurate statistics on crime for the neighbourhood of interest. In addition, establish the presence of the police in the neighborhood.

Jobs and Amenities

Areas with an increasing number of employment opportunities attract more people hence more tenants. Visit your local library or U.S Bureau of Labor Statistics to obtain information on employment areas about the neighbourhood of interest. The best rental properties are located near amenities such as gyms, malls, parks, movie theatres as well as public transportation. Keep an eye out for such properties.