Education and news for smart DIY landlords!
Customers always come first. For those tenants who are willing to pay any price, they will always look for, expect, and settle for the complete package. But what does a complete package look like? What are the criteria that tenants look for that would ensure their money’s worth and your investment leading to a win-win?
Who would want to live in an area just to have their domain and property robbed? Or worse, held up to gunpoint while walking outside? Nobody. If you want to invest in real estate, survey the area closely. Is there a police station nearby? Does the police patrol the area regularly? Or is the crime rate non-existent? Are there no reports of domestic disturbances? If so then that’s one go sign.
Some tenants probably own cars of their own, and the rest will choose to commute. Look for nearby bus stops or train stations. Check the road - is it 4 lanes wide enough for parking and passing vehicles? Is the pavement smooth? Are there curbs for pedestrians? Having all of these would entice potential tenants.
Nothing is much more convenient in the community if their workplaces are nearby. If the malls, convenience stores, or markets are easily accessible, your potential clients will imagine living their consumer lives easier. For those with families and children, nearby schools with good reputations are also signs of green flags.
For aspiring real estate owners like you, if the taxes on properties are fair, that would cut a lot of costs. If the taxes are high, you might end up earning less so you will price your rent higher and your potential tenant might not consider renting because of the high price you impose.
Tenants will always settle for cool environments as they would want to save electricity costs. AC units consume a lot of electricity and your tenants will not want to result in relying too much on that. Pick an area with enough trees for sunlight and where the breeze is constantly blowing.
An area that is prone to flooding, drought, earthquakes, wildfires, hurricanes, etc. is a bad sign. Always ask the local Homeland Security regarding the area you might be interested in. Tenants will find it inconvenient to evacuate at some time in their stay because the area is prone to tornadoes. You might as well avoid that and find a place where their stay will be safe. You can also avoid damage costs by being careful.
Health is wealth and your tenants are guaranteed to value theirs. They wouldn’t want to wake up with the smell of a month’s worth of uncollected garbage. Check the area’s local sanitation authorities. Ask them how frequently the collection of garbage happens. This is also vital information for your tenants as they would want to be informed when to throw their trash out.
The key to making your rental property profitable is to put yourself in the mind of the potential tenant. Expect what they would want and do your best to cater your investment to them. So when you survey an area, ask yourself this; Is the neighborhood safe and healthy? Will this area make their lives easier? Will my pricing benefit both of us?
If you’re ready, make Landlord Prep your go-to resource for landlording education. Here, we offer a complete DIY landlording course to get you on the right track. Join our academy today. If you want, you can check out Flavia’s real estate investing webinar first!