Checklist to Keep in Mind While Buying a Home to Rent It Out

When it comes to buying property, it’s a completely different ball game when buying property to live in versus buying investment property. This decision must also be well thought-out to get you the best rental income. It’s not an easy proposition so take some time out to decide on the right property and keep the important factors in mind.

Here’s a checklist to keep certain factors in mind when buying an investment property:

Maintain a budget

First and foremost, the most important property investment advice is to set a budget, so that you can realistically spend money on buying the space. Of course, you need additional funds for renovations, maintenance and a lean period where you might have no tenants. Decide if you want to invest in a property that has long term growth or something more affordable that promises healthy rentals. It’s you who has to take a pick!

Weigh pros and cons between new and old

This house is not really your own, which means that while you are buying this property, it is for the purpose of earning rental income. When it comes to older properties, you need to incur more expenses in renovation and refurbishing the flat. But remember, you can also make a certain profit in this scenario and maybe even strike a better deal! With new properties, things are mostly taken care of and they are in a better state, so this doesn’t apply there.

Research on the average rentals

Before agreeing on a rental, look up for the asking rates on popular housing portals. This will also give you a sense of the area’s investment potential as well as competition you face from other landlords in the area. It is better to be safe than sorry, since you can’t go back on your word after you commit to the tenant!

Location

When buying an investment property, location proves to be a significant factor. If you purchase a property in an upscale area, you are bound to get a better return on your investment in the long run. Make sure you also check if other builders are expanding in the area of your choice and if it holds promising investment potential. Next, do some research if the area is safe and has local amenities as well as accessibility.

Parking

Make sure you get a property with at least one parking space, which can help you quote a higher rental. If you don’t offer a space with your flat, tenants will have to find something on your own and this will dissuade them to get your property. It’s better to be well-prepared than to regret later. So, make sure you don’t miss out on this one as well, since this features as an important proposition while renting a property!

Make sure you research well and follow this checklist while buying investment property. After all, well begun is half done!