An investment property can serve you well for many years to come, but when making such a purchase, it’s essential to know what makes a particular property a great investment.
While factors will vary somewhat based on the type of property—for example, a house, condo, or apartment—it’s still crucial to evaluate all aspects before making the best choice. What should you consider before securing a rental property as an investment?
1. It’s All About the Location
Location is a huge factor in any property. The location can make all the difference when it comes to having a unit you can quickly fill and see a great return on your investment.
Of course, high-demand locations can change over time, which is why it’s a good idea to have a professional’s assessment of the property before you decide on purchasing. Here are a few key elements to consider:
- The area’s potential for growth. A property manager can give you solid insight into the area’s value and potential for future growth according to market trends. An area with a solid record of growth is likely to continue to flourish, making it a potentially worthy investment.
- Population, jobs, and crime. Get an idea of the area’s population, job market, and crime, as this will likely determine what renters your property attracts. A unit in an area with high crime may be difficult to rent out, whereas a district attracting professionals may be easier to market.
- Local schools and attractions. Consider the property’s location in regard to other sites that will influence who rents your unit. For example, a property near a college will give you a steady rental income during the school year, but maybe not during the summer. A property near good local grade schools is more likely to attract families with young children.
Other attractions could include nearby grocery stores, restaurants, theaters, and other venues your renters will appreciate having within a short walking or driving distance!
2. Don’t Ignore the Condition of the Property
The condition of the property you’re considering matters in regards to your investment. Some properties may be in poor condition, but could still deliver significant value with the right upgrades. If considering a property that’s in rough shape, you’ll need to think about how much initial capital is needed to make it not only livable but to appeal to the right renters.
Other properties may not be worth the investment of your time and money even if they would net a high price once the work is done. Look at the age of the building, the quality of the construction, and the value the unit would likely net once the work was complete. Compare your options and factor in maintenance and management needs based on the condition of the property in question to make the right decision for your new investment.
3. The Right Management Can Make All the Difference
With any investment property, the right management can make or break the value of your rental unit. An experienced property management company will find the right tenants for your unit to maximize your investment and reduce vacancies, and even help you avoid potential lawsuits. Proper management can keep your tenants safe and happy, and make them want to stay for the long term.
You can see the highest return on your investment with a dependable and skilled property manager. The right property management has the potential to keep your investment profitable even more than other features such as location or condition of the unit!
Make Your Best Investment With FAS
Our team at FAS Management is committed to helping you make the best investment and take care of your rental property for maximum value. Looking to make the right investment but don’t know where to start, or need help with your investment to stop losing money? Give us a call at (202) 337-5080 today!