5 Things Profitable Rental Properties Have in Common

by Karen Montgomery 08/22/2022

Buying a rental property is an excellent way to invest in real estate. It can be very profitable as an individual or when working with a larger investment entity. However, some rental properties are definitely more profitable than others. If you're considering investing in a rental property, pay close attention to these key features:

Neighborhood

Profitable rentals are usually in high-demand neighborhoods, and specific areas can affect your vacancies and turnover. For example, if your property is in a college town, you may have plenty of potential tenants leaving more vacancies during the summer months compared to the rest of the year.

Schools

The overall quality and popularity of schools in the area can affect a rental's profitability. Properties near highly rated schools and in popular districts will bring in higher profits when it comes time to sell your property or rent it out.

Job Market

Rental properties in areas with high employment rates and rapid growth attract the most tenants. The proximity to large company offices, industry and other high-volume job generators will increase the property value and your eventual profits.

Amenities

Access to amenities and culture is crucial to the overall demand for a rental property. Parks, restaurants, grocery stores and entertainment all make for profitable neighborhoods. Also consider the proximity and availability of public transportation. Properties conveniently close to bus lines or subway stops are popular among renters of all kinds.

Rent

No matter how sought-after the neighborhood or property, a rental has to be affordable to generate income. The most profitable and least-vacant rental properties are strategic about their rent and other fees. Study the average costs of living and rent of similar properties in your area to determine what potential tenants expect to pay. This will also help you turn a profit when you sell the property down the road, as properties with historically low vacancy rates are attractive to investors.

If you're interested in making money investing in rental properties, these are all important factors to keep in mind. Consider what the most successful properties have in common and use that as a guide to help you find the best investment.

About the Author
Author

Karen Montgomery

Venice is what Karen calls “home.” Since the beginning her Real Estate career in 2005, her clients testify she is informative and friendly and that’s why they return to her with their real estate needs. Her creativity and dedication are why her customers refer their friends, co-workers and family members to Karen when they need a Professional Realtor. Karen works hard for her clients and prides herself on being detailed oriented, keeping current with market conditions, finance programs, and future Sarasota County growth & development. “It’s not just about a customer buying or selling real estate, it’s about assisting customers to make well-informed decisions.” Karen focuses on providing customers with the best experience possible in residential sales and rentals. Karen is a member of the Venice Area Board of Realtors, National Association of Realtors and Florida Association of Realtors. 

If you are ready to turn your dreams into an address, contact Karen's Team at

Anchor Realty of the Gulf Coast 941-786-9912 or [email protected]