Has being a rental property owner sparked an interest in investing in additional properties? Has seeing other invest in real estate made you think about investing? When investing in rental property, you are also investing in the neighborhood. Choosing the right location is as critical as the home itself, and can result in attracting quality tenants willing to pay higher rent and in enhancing the long-term value of the property. Here are some tips to consider when choosing the location of rental property.
- Crime: Trends in foreclosures, vacancies and crime rates in the neighborhood can tell you a lot about the area.
- Weather: Severe weather, such as hurricanes and tornadoes, tend to strike in recurring regions and result in extensive property losses. According to a study by WalletHub.com, states with the highest property losses from natural disasters are Missouri, Oklahoma, Texas, New Jersey and New York.
- Financial Stability: Property values, tax rates and future development projects in the neighborhood and surrounding areas can be useful in projecting the property’s long term appreciation.
- Demographics: Population growth and average income statistics in the geographical area can provide insight into the value of the property, short and long term.
- Transportation Improvements: Planned transportation projects can impact the appeal of the property to renters and the property’s long-term value.
- Insurance: Charleston and the surrounding areas all have different flood zone requirements. This means that insurance will vary from location to location. Mount Pleasant is closer to the beach and is highly desirable location for this very reason. However, it is important to know that the flood insurance will be more expensive than that of Summerville or Goose Creek. this means your return on investment (ROI) will be affected.
Using our experience and real estate knowledge of the local area, Real Property Management Charleston can help you assess potential properties to make a solid investment.