Reasons to Invest in a Single-Family Rental Property
- Popularity Among Renters
Single-family rental properties are a sound real estate investment these days. Current trends indicate that more families are choosing to rent a home rather than to buy. Reasons for this vary from a lack of resources for a downpayment, poor cash flow, or even an inability to commit, based on job location uncertainties. But in general, families make great tenants because they care about their living space, and they usually do stay for a longer time.
2. Pleasant Business Environment
Keep in mind that the single-family rental market is still a pleasant business environment, compared to the narrow profit margins and fierce competition of the multi-unit world.
Factors in Deciding what Property is a Smart Buy
- Age and History
The numbers around a single-family rental property are different as well. Depending on the age and condition of a property, the time and material expenses of readying it for market will vary. Younger homes may not have weathered the test of its bones and will be due for the first wave of bigger maintenance expenses that come after 5 to 10 years, while homes in their teen years will usually be past them. Be sure you do your research on the home’s general maintenance history, including utility and appliance upgrades. Factor these thing into your costs over time as you make your decision as to what property would be your best investment. You may surprise yourself once you work these factors into your cash flow and financial goals, and end up purchasing something that hadn’t been on your radar.
With all these considerations, don’t forget to consider the older property that may require more preparation before you bring it to market.
Restorations and upgrades can increase your property’s value if you have spent your money on sound ideas for improvements. For example, families today are looking for at least 3 bedrooms space and they love an extra bathroom.
If you follow this course of thought and planning, you will have the best chance at landing a good, stable family for tenants. Matching a great home with a great family increases your chances of a long-term rental contract, which in itself will save you money. It will forge a relationship between you and your renters where you can be confident that they will respect your property and you will gladly handle its upkeep.
So if you are thinking of diversifying your investment portfolio to include real estate, be sure to examine the long term advantages single-family properties offer. Even months of negative cash flow will pay you back in property appreciation, and give you more control of your resources than other investments like the stock market or depending on savings rates at the bank.
Associate Yourself with Respected Professionals
At this point, you can see the value in partnering with real estate professionals, who can offer advice and help in carrying out your plans. There is so much to know and to weigh, and there’s nothing like an experienced even-handed person to advocate for you and your investment. At Real Property Management Metro Boston, we make sure our investors make smart business decisions. We guide our clients with accounting, we provide forms and statements related to the real estate business, and we offer professional maintenance at competitive rates. If you are looking for a full service professional to help you get started or if you want to off-load the tasks of ownership, give us a call. Your bottom line will improve with great management.
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