The professionals at Condoideas understand that your object in owning rental property is to make the largest possible profit from the most economical investment… with as little risk as possible.
You already know that rental income is offset by fees, maintenance and repairs. What you may not have considered are ways to maintain a high rental income while keeping your costs as low as possible. This takes planning. We can help you make sound choices that minimize risk.
The cost of the property is your first consideration. Your monthly payments must be calibrated to the overall ratio of rental income to costs of financing your purchase.
We recommend that you understand the supply of renters in the neighborhood you are considering. In a vacation area, make sure that the influx of visitors is steady throughout the year. For predictable, long-term rentals, you will need to attract a tenant base of income earners.
Ask yourself whether the area under consideration is home to high-income professionals looking for amenities or is it home to lower-income workers in need of economical living quarters? Either may do, as long as the property you are considering matches the needs of the local market.
Check with us to see what the rental market is like in your area of interest. A glut of rental units is not going to help you find tenants.
On the other hand, your unit might have things that recommend it over other options. Tour the area yourself as if you were a potential renter, starting with Web, newspaper and rental agency listings and including some actual visits to scope out the competition.
How Handy Are You?
Unless you are able and willing to make repairs yourself to a fixer-upper, avoid properties that will eat up your profits in materials, professional services and sweat equity.
Curb Appeal Can Lead to Overbuying
While the shrubs outside the entry are attractive, they may lead to high maintenance fees. Similarly, extra storage or luxury amenities like swimming pools may end up costing you in liability overhead. And while chandeliers and wall-to-wall white shag may attract some tenants, the cleaning and repair costs can cut into your profits.