A good rental investment is one that pays monthly dividends—in the form of rent checks—on a consistent basis with little risk. This might sound obvious, but the forms of risk that are included in virtually all rental properties can create any number of issues when it comes to collecting the rental income that you as the owner are relying on.
The first thing to remember as a landlord is that your property was likely bought with the help of a home or business loan from a mortgage broker, private lender, or other financial institution. That means that a portion of the rent that you receive from your tenant must go toward paying down the mortgage loan itself. Any lapse in payments could spell disaster for your stability as a property owner over the long term.
With these five great features in mind, keeping your risk low and profits high can be made easier than ever.
A great investment property is positioned in a great spot. This will be dependent on a number of important factors, of course. A commercial property needs easy access to transportation (train or bus stops, local roadways, etc.) while a residential space will feature a great neighborhood or fast access to the community’s amenities. Location is one of the most important factors when it comes to renting a property (for the tenant), so selecting a property that fits this mold is key to finding success on the business end of the rental relationship.
2. Appliances and Amenities
It’s also important to highlight the property’s amenities to potential tenants in order to attract a steady stream of renters. There will always be down periods that come after one tenant leaves the property in search of something that suits their evolving needs better, but with a wholesale partner like Banner Solutions (bannersolutions.com), incorporating excellent products and services into the home or commercial building is cheap and easy. This will give your property the edge it needs each time it hits the market in order to attract a new leaseholder.
Security is a must at any rental property. Tenants love the inclusion of additional lock mechanisms with a great number of cylinders and additional products that improve their safety and security. This is particularly important at commercial properties that will house important data, inventory, and even cash assets. Security features are a great way to prioritize the needs of the client and attract more potential tenants each time the space goes up for rent.
4. Exterior Space
A good rental property will include some exterior space as well. Many renters want the ability to sit out on a patio or balcony and take in the great weather during the spring or summer, and with this included in a home or apartment, you can expect the space to move back off the market in rapid time. Likewise, commercial property fares best when it includes parking and other exterior amenities that some properties can’t compete with due to their size, location, and other factors. Exterior space is a great way to woo new clients fast.
5. The Landlord
The final feature of a great investment property is you, the landlord. A great landlord can make the difference between an average tenant and a great one. Fostering a positive relationship with the people for whom you provide a space for business or personal growth is a key asset in your ability to collect rent on time and without a problem. Acting as a responsible landlord will ensure that you always maintain a great rental investment that continues to pay dividends long into the future.
For your next rental investment, feature these five items for the best possible outcome.