Purchasing rental property real estate in the Caribbean Region can often be a quite profitable choice. Though there are several risks you should avoid in pursuing this investment. A rental property investment in the Caribbean can yield substantial returns if you take into consideration a few things in your search for a rental property in paradise that suits your needs. It would also be helpful that you seek a knowledgeable real estate agent that could provide you with some suitable options within your investing range.

As you contemplate on your rental property investment options, it is necessary that you have an open-minded approach to all Caribbean properties and neighbourhoods within your budget limits. Take into consideration whether you intend to hire a management company to maintain your Caribbean rental property or would prefer to do so independently. If you choose to be a landlord and actively manage your Caribbean rental property, it may not be wise to purchase a property a great distance from where you live. If you choose otherwise, then distance will not be much of a factor.

Listed below are a few features you may want to consider before making your final decision when buying a profitable rental property in the Caribbean.

Neighbourhoods

The type of Caribbean rental property and the quality of neighbourhoods you choose to invest in can very much determine the caliber of tenants you will attract and how often your property is likely to face vacancies. For instance, if your property is located in a neighbourhood with a nearby university, chances are you will attract lots of students as potential tenants and you property will most likely experience vacancies when schools out and students leave to visit their families. In the case of tenants with children, if your property is located near a high school it is likely that they will be long-term tenants. It may be worth your while to check out the quality of the school to protect your investment, as this will in turn reflect on your property’s value.

A Sound Beginner’s Rental Property Investment

The best rental investment property for beginners is generally a residential, single-family dwelling (which tends to attract longer-term tenants) or a condominium. A low- maintenance investment choice would be condos because normally an association is present to assist with many of the external repairs, leaving you to just worry about the interior. However, since condos are not truly independent living units, they tend to garner lower rents and appreciate more slowly than single-family homes.

Take note of any malls, gyms, public transport hubs, parks, new condos and all such perks that are in close approximation to your potential rental property real estate investment that will attract renters. Seek the best blend of public amenities and private property that can be found or will be developed and established in the prospective Caribbean neighbourhood of your choice in the near future.

People generally migrate to locations where there are growing employment opportunities.  A workforce will surely follow the moving in of a big company into a neighbourhood. Consider this may also cause house prices to react either negatively or positively, depending on the type of company moving in.

Ensure that when charging the average rent to your possible  rental property real estate, that it is able to cover your mortgage payment, taxes and other overheads. If not, keep looking.  Research the neighbourhood of your potential rental property investment well enough to gauge where it will be headed in the next five years, because what may be affordable now could lead to bankruptcy later.

Property Taxes

You should be aware of the amount of money that you will likely be losing in taxes. Note that property taxes are not standard across the board. It may not be something to worry much about if the neighbourhood that you’ve picked is perfect for long-term tenants, but that’s not always possible. It is necessary to gather this information for yourself before investing in rental property real estate anywhere in the Caribbean.

Preparing for Natural Disasters

Insurance is another expense that you may have to deduct from your profits. If an area is prone to flooding or earthquakes, the extra insurance can add up and gradually reduce your rental investment property income.

Gathering Useful Information

Gather information from other tenants and homeowners in the neighbourhood.  Other tenants will likely be far more frank about the negative aspects of the neighbourhood you are about to invest in. Pay your future rental investment property neighbourhood a visit at different times on different days of the week to see it in action.

Every Caribbean island has good districts, every district has good neighbourhoods and every neighbourhood has good rental real estate properties. But it takes a lot of observation and research to achieve the best of all three. When you have found your ideal rental investment property, ensure that you keep your expectations realistic. Ensure that your finances are secure enough that you can wait for your Caribbean property to begin producing substantial profits, minus the need to reap from it urgently.