When you’re looking for a real estate investment in Lakewood, remember that you’re not looking for a home that you’re going to occupy. Many investors make the mistake of looking for high-end finishes, large layouts and other things that make properties appealing to them personally. Those things don’t matter so much on the rental market. Tenants want a safe, comfortable home in a good location that’s priced and maintained well.
Follow these tips when you’re looking for your next real estate rental investment.
Consider the Location of a Property
Just like on the sales market, location counts. The best tenants in Lakewood will be looking for a home that’s close to work, shopping, and grocery stores. They’ll want to be in a good school district if they have children. Many tenants also want a walkable neighborhood in an area that is well-populated but not too traffic-heavy. Think about where you’re buying. A centrally located home will rent faster and for more money than a property that’s more remote. If the home is in an HOA, make sure you have permission to rent it out and get to know the association’s rules and regulations before you buy.
Buy a Home in Good Condition
You also want to evaluate the property’s condition. It may be tempting to invest in a property that needs a little work. The price will be lower, and you’ll be able to make any upgrades and improvements that you want. However, the best rental properties are nearly move-in ready. You don’t want to spend a lot of time making repairs and renovations because it only extends your vacancy time and delays the collection of rent. Have the property inspected thoroughly before you buy, and talk to a property manager about the work that will need to be done in order to get the home on the market.
A home that’s in good condition when you buy it is also less likely to need a lot of costly repairs after a tenant moves in. Routine maintenance will always be necessary, but if you can cut down on surprise expenses like new furnaces and roofs, you’ll be in a stronger financial position with your investment.
Properties with High Potential Rents
You want to earn as much as you can on your investment, so choose one that is likely to bring in the most rent. The rental property you should buy is the one that tenants will find most appealing. It might have energy-efficient appliances that will keep their utility payments down or a nice fenced yard that’s perfect for pets. Maybe it comes with extra parking or a large master suite. When you can find a home that stands apart from the rest of the rental competition and it’s priced well, you should buy it.
One of the best ways to find the right rental investment for your portfolio is to talk with a professional property manager. A good Lakewood residential management company will help you estimate how much rent you can earn, how long it will take to find tenant, and what kind of work will go into a home before you can rent it out.
We’d be happy to help. Please contact us at Assured Management when you’re looking for your next investment home.