Whether you have decided to move to a new city for work, are planning to get your first shared apartment with a friend, or are just looking for a new opportunity to invest in rental apartment real estate, there are some important things you need to keep in mind before making this decision. Below are a few tips to help you along the way.
1. The Right Location
The key for purchasing a rental property is to look for the right location to make your investment. Whether it is near a university, where a lot of students are looking for places to rent, or close to a city center where basic amenities are easily available, the location must be in close reach for the prospective renters, especially those who are actually able to pay the rent. A gym or a utility store nearby can really improve the chances of finding a renter. In addition to this, an additional tip for identifying the right location is to look for places with a recent growth in infrastructural development, such as new schools, and parks.
2. The Right Rent
It is important that you do your own research before investing in a rental property. This involves some forecasting and budgeting regarding how much you can rent the property for, in short, how much you will earn out of it. This will help you in keeping track of any additional improvement you make in the building as well as other costs associated with renting an apartment. A great way to do so is to check with property agents in the local area, and do some of your own primary research by browsing through classified ads to see what similar apartments are renting for.
3. The Right Size
If you are planning to get an apartment, the size will be an important determinant of how much rent you earn and how quickly you can rent out the space. Mostly one or two bedroom apartments are easiest to find tenants for, considering that they are suitable for both smaller families and single tenants. Moreover, if you are planning to invest in a bigger apartment, you will most likely earn a higher rent, however it might take some time to find the right tenant, who is willing to pay more.
4. The Right Building
The rental apartment itself is your main product, hence, it is important that it is something your prospective tenants would prefer to live in. Look for an apartment that follows a simple structure and design. It would not only be easier to maintain, but it will allow you your tenants the opportunity to decorate it according to their choice. You must also make sure that the building, in which the apartment is located, has good plumbing and electrical systems, and there is access to heating and cooling.
Therefore, finding the right apartment to rent or even to live in is not an easy job. The real estate market for rental apartments has too many choices, and picking the right one is always a challenge. So, follow the few tips and tricks mentioned above, and enjoy the hunt.
