How Low Mortgage Rates are Increasing Home Affordability this SummerIt’s no secret that mortgage rates have dropped to historically low levels in 2020. It’s also not a secret that home prices
Key Tips For Investing In Rental Properties
Key Tips for Investing in Rental Properties
Thinking about investing in rental properties? We can help with that! Rental properties are a great way to build a lucrative real estate portfolio, and we’ve had many clients do this successfully over the years. Like any real estate investment, being strategic is a key factor to success. Over time, the income from rentals can become a great source of reliable income when done correctly. See below for a list of key tips that will help you get started in your real estate investment journey:
Find Homes in Great Public School Zones- If you haven’t already done so, find out where the public schools are with the top county grades and test scores. Parents with young children will often be looking for a rental that’s zoned for a great public school. For Pinellas County homes, check out our school grades blog here to see why this is a big deal and to get the most recent list of the best schools in the area according to the Pinellas County grading system.
Target Homes with a Garage- Like most families, storage space is a key consideration. As rental rates increase around Tampa Bay, some families may need to sacrifice interior living space to afford a rental in the areas they love. Homes with garages stand out, not necessarily for the parking potential, but for the STORAGE potential. Renting a storage unit is an additional cost, so homes with a garage will always be more desirable and retain good tenants in a rental home for a longer period of time.
Look for Block Homes- Here in Florida, frame homes often come with pricey pest control issues or prevention maintenance, plus more costly homeowners insurance than their concrete block counterparts. Higher insurance costs, pest control issues, exterior paint, and the basic maintenance of wood siding will all eat away at your bottom line over time. Consider these costs before making an offer on a property.
Skip the Pool- Pools are another feature that can eat away at your bottom line. Rental properties with pools can come with more expensive insurance (think liability) and tenants may not maintain the pool in a way that will keep it running smoothly. Sure, you can hire a pool company to maintain it and build that into the monthly rental amount, but be sure you know a great pool company before you sign up for that. We hear from landlords all the time that the pool company they’ve hired isn’t living up to expectations, creating a timely and costly headache for everyone involved. Remember, pools will also need new pumps, filters, heaters, and costly resurfacing over the years too.
Avoid Busy Roads- Did you know homes on busy roads appreciate at a dramatically slower level than similar homes that are just steps away, but on a quiet street? While a home on a busy road may seem like a great deal, families with kids will often avoid renting them due to the potential safety hazards. Many families that do have to rent a home on a busy road will use it as their ‘starter rental home’ and move out as soon as the lease period is up and they can afford or find something else on a quieter street. If a rental sits vacant for a month or two every year as tenants move in and out, this can also eat away at your profits AND increase costs to repaint, repair and get your home ready for new tenants each time. Plus, if you ever go to sell the home in the future, chances are it won’t have appreciated nearly as much as a home on a quiet road.
Andrea is the Managing Partner of The Sandy Hartmann Group. Andrea was born and raised in the Tampa Bay area and is a licensed Realtor with over 15 years of Marketing and Finance experience, holding ....