Tips for Finding the Right Rental Property

Preparation is crucial to running a successful rental property business, and one of the first steps is selecting the right rental property. There are many factors to consider, ranging from the price and value of the property to whether it’s close enough to the Mesa area for your property manager to take care of. Before you close on the property, you should consider whether it is likely to be profitable for you given the property taxes, mortgage payments, and property management fees.

rental - propertyAssess Property Taxes

Landlords often count on using rental fees to pay off the mortgage and take care of major repairs, but property taxes are sometimes overlooked. Remember that if the area has high property taxes, it doesn’t necessarily mean that you cannot turn a profit on the unit. High property taxes are generally indicative of a more expensive neighborhood that is close to local amenities and attractions. This means you can usually charge higher rent to compensate for higher property taxes.

Evaluate Locational Advantages

When designing ads for your rental units, your property management professional will try to highlight the main selling points of the area as well as the unit itself. One primary locational advantage is access to an excellent school system. Even if your tenants do not have children, proximity to good school systems will affect the overall value of your property. In your rental ads, your property manager may also point to local attractions like convenient shopping areas, easy access to highways and public transport hubs, and proximity to parks and cultural attractions. The locational advantages of a particular property may translate to higher profitability.

Check for Unusual Insurance Issues

It’s always best to know about the particular downfalls of an area, such as whether it could be located in a floodplain or whether the area is prone to fissures or located in an airport zone or toxic cleanup area. If any of these situations apply, you should find out about their effect on your insurance premiums before deciding whether or not to purchase the property.