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5 Important Considerations When Investing in Real Estate Property for Rentals

July 04, 2012 | Comments: 0 | Views: 201

Rentals is one way of getting smart on how you'll spend your hard-earned money. Why is it so? It is because you may be able to earn money even though you do not own the property itself. How is that possible? By renting the property from the owner and having it leased to someone. Of course, this is a hypothetical situation and pretty much depends on your lease agreement with the property owner.

But regardless of whether you'll rent and use it or have it rented to somebody, the important considerations to take note is quite similar in both cases.

You should take note of them, do your own research before talking to the property owner;

1. Location

What is the one thing that most people will consider when investing in Real Estate property? I bet most people you will talk to, the obvious answer given is location! It is almost everything especially in terms of convenience. Prospective lessee will prefer a property location where the most basic necessities are accessible like transportation, schools, foods, just to name a few, Logically, the lessor can and will command a higher rental payment at prime locations.

2. Age of the property

This is obvious, the older the property the lesser the rental price as compared with newer ones within the same location, Though this is logical, you can still get a reasonably higher rent if the property is well-maintained both internally and externally. If you are lucky, you'll even get a better rental price if the lessee is not so much concern of the rental amount, but focusing more on comfort and convenience.

3. Current market rental information

You need to do your own research on the average and the range of the rental prices in the area that you are interested in. Armed with this information, you will be in a better position to negotiate with the property owner or some prospective lessee. You do not need to be an expert realtor to get this information. This kind of information should be available publicly in the area that you are interested in.

4. Neighbourhood safety conditions

This is a significant consideration especially if the lessee are married and have some children. But even then if the lessee do not have children, the safety conditions around the neighbourhood cannot be neglected either. Thus, it is important that safety is at least at a better state in the area that you are interested in. Logically, nobody likes to live in a place where one's safety is at risk.

5. On-going construction projects in the area

This could be one consideration where focus is lesser. Though this might not be as bad as compared to an unsafe environment, but I bet you do not want to be deprived of a sound sleep during the day if you have to. In some cases, construction works need some form of ground drilling and more knockings. This alone is an annoying activity that you've just wished you shouldn't have rented the place. Therefore, look around and see if some construction works are going on in the area and know the duration. At least you have an idea on how long the disturbance will last and decide if you can take it or not.

Investing in Rental Property need not be that difficult. You just need to do your homework by getting all the relevant information you need before making a decision.

I encourage you to learn more and advance your knowledge when it comes to rental properties. Reward and do yourself a favour by visiting this link,

It could be the solution that you are looking for. Check out the link indicated and thank me later on!

If you have any questions about this article and rentals in general, I can be reach at

To your success!

Source: EzineArticles
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