{"id":1151,"date":"2017-06-06T10:08:39","date_gmt":"2017-06-06T10:08:39","guid":{"rendered":"https:\/\/www.weetas.com\/insights\/?p=1151"},"modified":"2018-05-29T11:29:28","modified_gmt":"2018-05-29T11:29:28","slug":"7-things-to-look-for-when-investing-in-income-generating-rental-properties","status":"publish","type":"post","link":"https:\/\/www.weetas.com\/insights\/en\/7-things-to-look-for-when-investing-in-income-generating-rental-properties.html","title":{"rendered":"7 Things to look for when investing in income generating rental properties"},"content":{"rendered":"

<\/u>Investing in an income generating rental properties is attainable only if landlords put certain considerations in mind before closing a deal.<\/p>\n

Rental properties are a double-edged sword that can either make you one of the wealthiest investors alive or break your bank.<\/p>\n

From handling difficult tenants<\/a> and addressing their complaints to handling all that is related to repairs and maintenance, owning a rental property is a daunting responsibility.<\/p>\n

This is why choosing income generating rental properties is what will make this entire process worthwhile.<\/p>\n

Below we give you the 7 things to look for when investing in income generating rental properties<\/p>\n

1- Location<\/strong><\/h2>\n

\"Location\"<\/p>\n

The neighborhood where your rental lies in has to say a lot about its potential of becoming a profitable investment.<\/p>\n

Tenants are now aware what qualifies as a good and appealing neighbourhood or not.<\/p>\n

Hence, by choosing an attractive location that lies in a safe neighborhood and near all schools, hospitals and shopping malls won\u2019t only guarantee you a quality tenant, but also lessen your rental chances of staying vacant for long periods of time.<\/p>\n

2- Amenities<\/strong><\/h2>\n

\"Amenities\"<\/p>\n

Investing in a property that lies in a mixed-used development where tenants have exclusive access to all sorts of facilities such as gym, sauna, Jacuzzi\u2026etc will increase your property’s chances of staying busy all year round.<\/p>\n

However, choosing to invest in a property that lies far away from anywhere that matters to your tenants will lessen those chances.<\/p>\n

Everything comes with a price and investing in a property that comes with amenities and benefits to your tenants will cost you much but you will soon reap the rewards afterwards.<\/p>\n

3- Rental rates<\/strong><\/h2>\n

\"Rental<\/p>\n

You need to be aware of the average rental rates in the neighborhood of your rental so as not to ask way too much or way too less.<\/p>\n

Also, knowing the rental rates will help you determine if the property you are eyeing will generate enough income to cover your mortgage and maintenance expenses or not.<\/p>\n

After all, you don\u2019t want to invest in a rental that is obviously an alligator property.<\/p>\n

4- Total Number of Listings<\/strong><\/h2>\n

\"Total<\/p>\n

When the number of listings increases in a specific neighborhood, then that is a sign of high vacancy rates.<\/p>\n

A high vacancy rate could indicate a problem with the neighbourhood itself, like high crime rates.<\/p>\n

If you are unable to know the exact number of listings in your neighborhood to determine whether or not the area has a high vacancy rate, a good indicator would be low rental rates.<\/p>\n

If the neighborhood rental rates are lower than average; then chances are that this area has high vacancy rates.<\/p>\n

5- High Growth Rates<\/strong><\/h2>\n

\"High<\/p>\n

Upcoming developments in the neighborhood of your rental whether commercial or residential are all signs that your area’s future is a promising one.<\/p>\n

Check for any new developments in your neighbourhood and if you find many developments on the way, then that is a sign that your area has a high growth rate.<\/p>\n

Buying a rental in such areas will be a wise and successful investment that generates income for many years to come.<\/p>\n

6- Job Opportunities<\/strong><\/h2>\n

\"Job<\/p>\n

When you invest in a rental that lies close to a growing job market, you are increasing your rental’s chances of getting rented.<\/p>\n

Many employees especially expats prefer to rent houses that lie close to their place of work.<\/p>\n

Which is why it is advisable to do your research about the job market in the area you are interested before you close the deal.<\/p>\n

7- Condition Checklist<\/strong><\/h2>\n

\"Condition<\/p>\n

Be a savvy investor and do the needed inspections before you close the deal to make sure your rental fits the condition checklist.<\/p>\n

And by that, we mean that the property is in good condition and ready to be rented at once.<\/p>\n

A property’s condition can make or break any deal.<\/p>\n

Purchasing a property in a poor condition will cost you a lot to repair and you will end up paying twice your rental income to fix the damage.<\/p>\n","protected":false},"excerpt":{"rendered":"

Investing in an income generating rental properties is attainable only if landlords put certain considerations in mind before closing a deal. Rental properties are a double-edged sword that can either make you one of the wealthiest investors alive or break your bank. From handling difficult tenants and addressing their complaints to handling all that is … Continue reading 7 Things to look for when investing in income generating rental properties<\/span><\/a><\/p>\n","protected":false},"author":3,"featured_media":1158,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"_links":{"self":[{"href":"https:\/\/www.weetas.com\/insights\/wp-json\/wp\/v2\/posts\/1151"}],"collection":[{"href":"https:\/\/www.weetas.com\/insights\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.weetas.com\/insights\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.weetas.com\/insights\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.weetas.com\/insights\/wp-json\/wp\/v2\/comments?post=1151"}],"version-history":[{"count":5,"href":"https:\/\/www.weetas.com\/insights\/wp-json\/wp\/v2\/posts\/1151\/revisions"}],"predecessor-version":[{"id":2383,"href":"https:\/\/www.weetas.com\/insights\/wp-json\/wp\/v2\/posts\/1151\/revisions\/2383"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.weetas.com\/insights\/wp-json\/wp\/v2\/media\/1158"}],"wp:attachment":[{"href":"https:\/\/www.weetas.com\/insights\/wp-json\/wp\/v2\/media?parent=1151"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.weetas.com\/insights\/wp-json\/wp\/v2\/categories?post=1151"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.weetas.com\/insights\/wp-json\/wp\/v2\/tags?post=1151"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}