Wondering how to buy a house that’s easy to rent?
Most of the unexpected issues faced by landlords when closing deals with a potential tenant stem from the fact that they did not put much thought into buying of the house. Most houses for rent do not start out as rentals. They are usually converted into a rental when the owner wants to move out but doesn’t want to sell the house. Here is how to buy a house that you can rent out without much fuss should you decide to.
1. The Location
It is always important to consider the location of a house before you buy it. The last thing you want to do is buy a house in an unsafe neighborhood or one that is inaccessible and imagine it will easily rent out. The best locations are popular neighborhoods where there is access to good schools and other amenities and there are other proud homeowners. If you cannot see yourself living there, chances are most other people won’t. It is also important to remember that the location of your home greatly affects its value.
2. Consider Owner-Occupied Neighborhoods
Houses with the best market value are those that are in neighborhoods where owners reside in. this is usually because homeowners are more than willing to pay a premium for houses in neighborhoods where other homeowners reside in. Whether it is a flat, condo, or mansion, it is best to buy in owner residences. Only buy in an area with high demand for rentals such as central downtown locations.
3. The Minimum Features
Always remember that a 3 bedroom and 2 baths house is easier to rent than a 2-bedroom one bath house. Also, a house with more bedrooms and baths commands a higher amount of rent. 3 bedroom and 2 bath houses are appealing to families and also individuals looking to ease up on rent by having roommates. Also, a potential tenant looking to rent a 2 bedroom house may find it more appealing to pay just a bit more for an extra bedroom and bath. Also, 3 bedroom homes have the best resale value.
4. New Homes Over Old Homes
If you are thinking of buying a house that can potentially be rented out, it is always a good idea for go for a new home as opposed to an old one. This is because, from an investments perspective, a new house has fewer repairs and maintenance issues. Even so, you shouldn’t rule out old houses. For instance, old houses built in the 1950s have better architectural designs, are spacious, and are built better. This means that they require less maintenance.
5. Hidden Costs
Find out if there are any hidden ownership costs. Such costs can eat away any profits you thought you were making. Make sure to find out details about home insurance and how long the house has been vacant. Find out if you need flood or earthquake insurance and how much these will cost and weigh it against the amount you will rent it out for.