Investing in a first time rental property is a big step, but one of the biggest mistakes you can make is to purchase a rental property that is not going to be profitable. While most properties have some return capability, especially in the Seattle area, where real estate goes for a premium, it is important to pay attention to what you are getting for the money, the rental price, and how much the area has to offer. Here are a couple of tips on what to look for from local Woodinville property management companies.
A Good Neighborhood
A good neighborhood is actually the most important thing to look for when searching for a home to purchase as a rental. This usually means a low crime rate, well cared for homes, and clean streets. Generally, if someone comes with their family to look at a home and the entire street is a mess, then they probably won’t want to rent it. You can also be certain that if they have kids, they will check the crime rate for the street or the neighborhood. Luckily, the rate is pretty low for most of Woodinville.
Another thing to consider is how many homes are empty, how many shops the area has, and whether or not there are bus stops or other public transport options. A large amount of empty houses in an area is usually a red flag to home renters, who usually see it as a reason not to move. Empty houses also drive down the rental rate, because there are plenty of available options. You also want to make sure that the home is within range of schools, restaurants, and public transport.
Amenities are always important to look for, but one thing to keep in mind is that you don’t necessarily need a swimming pool and a wrap around porch to rent a house. Instead, try looking for the things that most renters want. A large kitchen and a large bathroom. In fact, most renters base their entire rental decision on those two rooms. You also want to look for modern bathrooms and appliances, large windows, and a yard.
Insurance and Tax Costs
You also want to check how much the property costs for insurance and for property taxes. You can find out how much you might have to pay in property taxes at the Woodinville City Hall. For insurance costs, you should probably call your insurer of choice and ask for an estimate, or use the internet to calculate the rate, although this is not always accurate. Double checking with city hall to make sure that there are no liens or other issues associated with the property is also important to do before buying.
Finally, while there are many things to look for to make sure that you are buying a profitable rental, the most important factor for turning an investment property into a profit is proper management. The best way to make sure that you have the right management is to hire a Woodinville property management company, which will take care of your property, the marketing, tenant screening, and even maintenance.
The discussion herein is of a general nature only and is not to be construed as specific legal advice, which requires the establishment of an attorney-client relationship and fee agreement. SJA Property Management does not provide legal services.