Investing in rental properties is a great way to earn a relatively passive income. It’s a tried-and-true strategy for building wealth. But not all properties on the market are cut out to be a rental. Priorities have changed for many renters over the last few years and now more than ever, it’s important to choose an investment property that will attract tenants instead of push them away. Demand for rentals may be high, but that doesn’t mean you want to settle. So what key factors should you look for when buying a rental property in Loveland?
Location: The Make or Break for Any Rental Property in Loveland
The first thing to look for when evaluating a home’s potential as a rental property may sound cliché, but it really is the truth. Location is everything in real estate. Where a rental property is located can make or break your investment. This means that you should thoroughly vet the location, neighborhood, and nearby amenities and attractions when looking to purchase a rental property in Loveland before pulling the trigger. What’s the neighborhood like? What does it have to offer? How convenient is it for both everyday life and entertainment? What do other rental properties in the area look like and offer? You want to scope out the competition as much as the location to get the best assessment of what your chances of success truly are.
The Home Itself
After you’ve found the right Loveland location, it’s time to look at the home itself. Does it have the key features tenants look for? What amenities does it have, such as a washer and dryer or central air? Pay close attention to the kitchen when evaluating rental properties in Loveland. Often the central focus of the home, the kitchen has the biggest potential to drive potential renters to or away from your property. And steer clear of homes that have awkward or challenging layouts. The goal is to find a property that appeals to a wide array of renters quickly. You don’t want to hunt for the right tenants and waste valuable time letting your home sit vacant until you finally find them.
Upgrade Potential or Maintenance Disaster?
Fixer-uppers are great if you have the skills, money, and resources to make them work. That being said, they’re not always a great option for use as a rental property. You get back exactly what you put into a rental home. You can’t offer a lump of coal and expect to get a diamond at the end of the lease. Part of attracting qualified tenants is offering a well-maintained home that will make them want to care for it like their own. Avoid homes that come with high maintenance costs. These will eat into your monthly profits as various appliances or systems need replacing or repair. Look for homes that are relatively updated and easy to maintain. Not only do they attract quality renters, but they won’t eat into your profits and raise your stress levels with multiple maintenance issues.
Pulling the Trigger
Finding the right rental property in Loveland takes time. Colorado’s buy and sell markets are highly competitive, with low inventory, high demand, and high prices. Don’t be discouraged and settle for a home that simply won’t rent well. Make sure to thoroughly vet each potential home based on these key factors to make the best decision possible.
And when you’re ready to pull the trigger, contact Real Property Management Colorado about managing the home for you! Between our Tenant Placement Services and our full Property Management services, we’re confident we can help you down the right path towards property management success! Contact us today to get started!