If you are looking to buy a single-family home or duplex that you'll be renting out to tenants, it is important to keep this purpose in mind as you peruse the real estate for sale in your area. A home that's well suited to be your live-in home is not necessarily the best one to be a rental -- and vice versa. Here are four characteristics to look for in a home you're buying just to rent out.
Plenty of parking
This is especially important if you're buying a duplex and will be renting out both sides. If there is just one driveway, the two tenants may struggle with parking. What does one tenant do when the other has nowhere else to park but behind them? At the very least, a home with multiple rental units should have a driveway that's wide enough for two cars to park side-by-side. A small parking lot-type area is even better. In a single-family home, a bigger driveway is always better too -- since you don't know if your renters will have multiple cars and people who drive.
An updated roof
You can get by with outdated cupboards and counters, and an older furnace may be just fine if it's in good working order. But you do not ever want to rent out a home with a questionable roof. Tenants probably won't be spending time in the attic, so they won't notice roof leaks immediately. By the time they're detected and addressed, you may have substantial water damage to repair. Make sure the home you buy to rent has a newer roof in good shape.
Carpeting is plush and enjoyable, but it's a bad choice when you have tenants. If one tenant has a dog that leaves fur and stains on the carpet, you'll have a hard time cleaning up the mess and making it suitable for the next tenant who may not have pet and certainly won't want hair around. Hard floors are just easier to keep clean and sanitary between renters.
A good neighborhood
If the home is located in a questionable neighborhood, "better" tenants (those with higher incomes and more stable jobs) may not want to live there. So, look for a home that's at least in a mediocre part of town. You'll then be renting to a clientele with more ability to pay, which means your chances of having someone skimp out on the rent will be smaller.Share
12 September 2017
Although I've never worked professionally in the real estate business, I sure know my way around it. How, do you ask? Well, I have simply rented a lot of different places and worked with a lot of different landlords and real estate agents. In the past 7 years I've lived in 11 different houses or apartments, none of them my own. In finding those 11, I have looked at literally hundreds of apartments. I used to hate house hunting, but now it's kind of fun. You just need to know what you want and the right questions to ask. Hopefully this blog can help you learn some of the tricks of the trade from another renter like yourself.