5 Qualities To Look For In a Rental Property

There are many characteristics landlords need to evaluate when selecting a rental property. Some factors, such as reasonable pricing, well-maintained, and a quality build, are considered basic requirements and form a good foundation for what to keep an eye out for. However, there are qualities that can make a rental more desirable to prospective tenants. 

Today, we’ve gathered five examples of qualities to look for when hunting for an investment property.

Location

There is incredible information to gather about the location of the rental property. The location remains one of the most influential factors in determining a property’s success as a rental. Properties located in desirable neighborhoods with parks, schools, and shopping centers nearby attract more prospective tenants and oftentimes command higher rents. The presence of these amenities may increase the demand for rentals while decreasing the likelihood of extended vacancy periods.

Additionally, it's a good idea to investigate the surrounding areas to determine if there are low vacancy rates or if there is a stable rental demand. A well-located property reduces turnovers, provides reliable income while supporting long-term appreciation.

Low Maintenance Requirements

Costs associated with maintenance obligations can significantly affect a landlord’s operational costs. Properties that need minimal upkeep are generally seen as more efficient to manage when compared to more elaborate properties. Properties with minimal maintenance generally result in fewer complaints from tenants. Simple landscaping, such as drought-resistant lawns and native plants, minimizes the amount of time and resources needed to care for the exterior of the property.

Maintenance is more than just the exterior; interior features such as hardwood or tile flooring are preferable to carpeting. This is because carpeting is less durable and more difficult to clean in the case of liquid damage. While you can remodel the rental to require lower maintenance, by selecting a property that already has these characteristics, landlords can reduce long-term repair costs and streamline management operations. This is also a benefit to tenants, as it's easier to keep their home clean, which can contribute to tenant satisfaction and retention.

Modern Systems and Infrastructure

The condition of a rental property’s internal systems also plays a large role in its overall functionality. Up-to-date HVAC systems help to ensure consistent comfort for your tenants. HVAC systems have, on average, a lifespan of fifteen to twenty-five years. Knowing the age of this system can help determine further costs down the line. An up-to-date electrical system helps to support the power demands of modern tenants. Although many electronics have become more efficient, the demand for power has never been greater. An older system not only limits the amount of power available to the tenant, but it can pose a safety risk, as old wiring can lead to electrical fires. As for the plumbing, older pipes may be at risk of leaking or have water pressure issues. This means that properties with newer systems in place are less likely to require costly upgrades after you purchase them.

Curb Appeal

You only get one first impression, and the same is true for a property. The exterior appearance strongly influences what tenants think about your rental at a glance, as well as its marketability. Curb appeal encompasses all the visible elements of the property’s exterior, including the condition of the paint, the landscaping, windows, doors, and overall quality. Rental properties that appear neglected tend to deter potential tenants, which can result in longer vacancy periods. A clean and visually appealing exterior signals to prospective tenants that the property is well-maintained and the management is attentive. Lighting and fencing also play a role in shaping the property’s appeal.

Energy Efficient Home

Energy-efficient properties are mutually beneficial to both landlords and tenants. Insulation, double-pane windows, and energy-efficient appliances help to regulate indoor temperatures during the hot seasons while reducing utility expenses. These features are especially valuable during summer as the tenant remains comfortable while the HVAC system needs to work less hard to reach desired temperatures.

Smart home technologies such as programmable thermostats, smart lighting, and keyless entry can further increase the property’s appeal to modern or young renters. These features may justify higher rental rates and enhance the property’s competitiveness in the market.

By evaluating these characteristics, landlords can make a more informed decision about purchasing a property. Each factor contributes to the long-term success of a rental property. If you’re looking for other qualities to look for when buying a new investment property or if you need help managing your Beach City rental property, we invite you to call us today at (562) 888-0247 or complete our Owner Application online.