Buying Rental Property
As I explained in the previous post (Buying Rental Property-Investors Hear the Knock of Opportunity), the things you look for in a home to own and occupy are different from the things you want in buying rental property.
There, we focused on price, rents, and size.
Now, let’s talk a little about what you look for inside a rental home.
I believe that you need to provide a good home if you expect to attract good tenants. “Slum Lord” is an ugly phrase and an even uglier philosophy.
However, things that you might like to have in your personal residence may not be appropriate in a rental property.
Good, well-functioning cabinetry, clean carpeting, windows with screens, and sturdy, serviceable appliances are things we all want in our home – whether you are a homeowner or a renter.
However, those stainless-steel appliances and hardwood floors that are so stylish today might not be the best choice in a rental property.
High-maintenance surfaces and finishes which are easily damaged, although often quite trendy and stylish, are not necessarily desired by renters. Not only do they fail to generate much more rent per month, they may result in stressful situations between landlord and tenant which benefit no one.
Also, swimming pools are absolutely to be avoided! Although I have owned several homes with pools and personally enjoy having one, there are far more people who think otherwise. Add to that the increased liability, additional maintenance costs, and danger to occupants and guests and you are far better off without one.
Another thing we may want in our own home, but not in an investment property is a large lot. The burden of exterior landscape maintenance (unless you own a property with a homeowners association) usually falls on the occupant and, unless they have a particular need for the extra lot size, they often see this as just one more thing they do not own but must maintain.
Think about the last time you stayed in a hotel. You were a renter! Short-term, pay-per-day, no vested interest in the property once you vacated. You probably didn’t treat the room the same way you would if you were in a home you owned, nor should you have been expected to!
You probably didn’t offer to help clean the pool or make the bed. I doubt if you pulled a couple of weeds as you walked to your car. You certainly didn’t worry too much about how the bathroom tile would hold up in the long run.
Neither will your tenant.
In my next post, I will show you how to pick the perfect rental property from a list of likely candidates.
Incoming search terms for the article:
Related posts:
