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.