Posted on: 10 June 2021
Housing and land that are available for the development of new housing are in a limited amount, which creates a good source of demand for an essential component of everyone's lifestyle. With the high demand for housing, there is also always going to be a good market for single-family home rental properties, as not every resident will be able to buy a home. So, to help you get a great investment opportunity with single-family homes, here are some recommendations to help you invest in a single-family home as a rental property.
Look For Good Rental Property Potential
As a buyer of a single-family home, you don't want to look for a house that you like personally, but you will want to find one that has good rental potential and provides features and benefits that a good variety of renters would like. This means you can look for a home that has at least three bedrooms and two bathrooms to provide space for a family with two children or more. It is a good idea to look for two bathrooms because if one bathroom is being used in the household, it is helpful to have a second one open for others in the household to use.
It is also good to find a house that has plenty of storage and a basement or attic space for extra storage. If the home has a garage, this is a potential boost for the property as a rental. Then, look at the yard and backyard space to see if it is fenced in and has finished landscaping with trees, lawn, and flowers, shrubbery, or other accent vegetation.
Qualify the Right Tenants
As a future landlord, one of the best steps you can take to ensure your rental property's success is to always rent to the right tenants. There will be a variety of renters who apply for residence in your rental house, but all of them may not be the best candidate. Some renters may not have good rental history, stable income, or have the time or desire to take care of a yard with a single-family home rental property.
For this reason, be sure you screen your applicants with their past rental history, credit history, and a full background criminal check. Call their prior landlords and review their credit report, looking for unpaid rent or similar derogatory records. Look at how frequently they move and if they fulfill all past rental lease contracts. Then, find out their income and how long they have worked at their job. This can give you a good indication of how stable and reliable their income is and, as a result, how well they will be able to fulfill their financial obligations including paying their rent.Share