Purchasing rental property is an exciting purchase but it is also a large one. While any investment in real estate requires many considerations, purchasing rental property has many unique factors. Whether you are looking to purchase a second home for additional income or as a vacation property, here are four things you should look for when purchasing this type of real estate.

1. Location and Neighborhood

One of the biggest factors to consider is the location of the property. You want real estate that is in a prime location, as that will attract potential tenants. You also want property that is in a well-kept and safe neighborhood. You won’t be around 24/7 to check and monitor your property, which makes the location of the property even more important. It is also wise to make friends in the neighborhood who can keep an eye on the house and alert you of any suspicious activities going on.

2. Minimal Repairs and Updates

While homeownership requires a lot of maintenance and repair work, owning a rental property is no different. There will continually be projects and maintenance that must be completed around the home. However, when looking for the ideal property, consider homes that are move-in ready and have very few updates to complete. You don’t want to redo the entire kitchen or bathroom, and you certainly don’t want to pay for a new roof or major plumbing issues.

3. Easy Lawn Care

While lush, large, and beautiful yards are definitely a selling point, they can be challenging for rental homes. Either you will hire out the landscaping, do it yourself, or ask the tenant to do it, which may not always be to your liking. When looking for rental property, find homes with very minimal landscaping. While a yard can increase your monthly rent, it can also be a large burden if you don’t have a plan to take care of it.

Collingwood rental property

4. Average Rent in the Area

When you are considering specific rental properties, it is essential that you think about the community and the average price of rent. By choosing the right home, you can make money each month but you need to ensure the rent covers the mortgage, property taxes, insurance, and maintenance expenses. On the other hand, you don’t want to charge too much in rent or you will not find tenants and you will have to pay for the home out of your own pocket.

If you are considering purchasing rental property, talk to real estate agent Sheila Shepherd. She can help you narrow down your options, factor in all aspects of being a landlord, and find the ideal rental property for your needs.