With the start of your new year you may be looking to expand your rental property portfolio. You may think more rental properties mean more income. However rental properties can quickly turn into massive money pits if you fail to get the right property. Below is a list of aspects you need to consider when purchasing a rental property.
Neighborhood: Understanding the neighborhood that the potential property you’re looking at is in is essential for determining whether you will be able to make a decent profit on your investment. For example if you’re looking at a higher end property near a university where the most likely tenant will be college kids you may want to pass as students generally have limited housing budgets and may only want to lease the space for 10 months.
Property Taxes: Property taxes can quickly eat away at any profit from a rental. Before you purchase a rental property make sure you have researched the tax information on file in the town’s assessment office.
Amount of Listings and Vacancies: If you notice when you search local listing there is a long list of vacancies you may want to think twice about buying the rental property. In addition, if you see the prices listed on comparable rents are not enough for you to make a decent profit then the property is not worth purchasing.
Using the best building management software: Software for Property Management will help you save money and manage your rental property efficiently. It is easy to make mistakes if you are not using an efficient property management system. Realty Information Systems Residential and Commercial Property Management Software has features that will help you manage your property whether you have one rental property or a 1000 units in multiple rental complexes.
This post is provided by RISSOFT Residential and Commercial Property Management Software, specializing in innovative and cutting-edge property management software for all 50 states. Request a demo or contact us today to receive more information.
Disclaimer: The information provided in this post in not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.
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