What to Look For When Buying Your First Rental Home
Are you thinking about getting involved in Tucson’s hot rental market? If so, then you may be on your way to buying your first Tucson rental home. Keep in mind, though, that some properties are better investments than others. Not exactly sure what to prioritize when it comes to purchasing your first rental? Our team at Bancroft & Associates is here to share some of the most important things to look for in a rental property.
In the rental market, location really is key. Unfortunately, you may have a hard time finding renters for even the most beautiful home if the location isn’t ideal. And in a city like Tucson that has so much to offer, there are plenty of great neighborhoods to explore as you search for your ideal rental. As you assess your options, look for properties that are close to amenities like excellent schools, parks, shopping, and dining. Access to public transportation may also be a selling point for many of today’s renters.
Of course, you’ll want to find a rental that falls within your comfortable budget, but that’s not the only thing to keep in mind when it comes to cost as well. You’ll also want to think about the ongoing and future costs that you can anticipate incurring as a landlord, such as maintenance and landscaping.
For example, you might find a home that’s within your budget—but if it’s in bad shape and will need a lot of work in the coming years to repair, it may not be the smartest investment. Make sure to crunch all the numbers before you decide on a property, and consider speaking with a local real estate agent to make sure you’re getting a fair price before you write up an offer.
Speaking of maintenance and repairs, you should never purchase an investment property without first having a thorough inspection done on the home itself. And in fact, many lenders will actually require a property inspection as a stipulation of your loan approval.
An inspection can alert you to quality issues within a home that could cost you thousands of dollars down the road. And even if your inspection comes back without any major issues, it’s worth spending the few hundred dollars to have that peace of mind before you make such a major purchase and investment.
How much will you be able to charge in rent for the property you’re considering? This is yet another factor that should not be overlooked when shopping for a rental home. There are plenty of calculators and other tools that can help you determine a fair rental rate for your tenants; this number can be used to help you decide which property is the best investment for you.
Let Us Make Your Rental Home Profitable
Whether you’re looking for help in selecting a rental home or are interested in property management services to maximize your earnings and wealth creation, Bancroft & Associates is here to help. With more than 44 years of experience serving landlords in the Tucson area, we know this market inside and out. Contact us today to get started!