Once you’ve decided to invest in the property rental market, the real work begins. You’ll need to carry out the required research to ensure that you see the return on investment that you’d like. Not only will you need to consider the location-based profitability, but it will also have to fit into your lifestyle and you’ll need to prepare to take on the responsibility of the care of your tenants. The good news is that once you’ve settled on a location and finally found the right home, a lot of the stress and time-consuming elements of being a landlord can be taken care of by our specialist team in property management. Rochester NY is a fantastic place to invest in, but as well as speaking with the experts, you should make time for your own research.
Here are a few things that we always advise our clients to consider before investing in any property.
One of the first things you’ll want to look into is the average rent of each area. This is where your asset will be working for you so ensuring that there is the potential to make a decent income from your investment should be a priority before you buy. The average rental fees of the area need to be large enough to provide you with a profit and to cover your mortgage payment, taxes and extra costs that come with owning a property. This means when you’re researching an area, it’s important to investigate all the factors that determine rental prices. Rochester NY is considered to be attractive to tenants, which means that there is a flourishing market for potential owners. However, be sure to look into predictions of future taxes as they could mean make or break for your investment.
If you have a few areas in mind already, it would be worth contacting the local municipal planning departments of each one. Not only could this be an opportunity to find an asset but if there is lots of planned development in your area, it’s a good sign of positive growth. However, not all development is a plus. Some new developments can actually reduce the price of nearby homes. This is where the knowledge of an experienced property manager comes in handy and our team at Torres Turn Key would be more than happy to help guide you on this.
This is an important thing to look into before investing in any property. Taxes tend to vary greatly across areas, so you’ll need to do thorough research into each zone to ensure that you can make an informed decision. While the aim is to make money, you need to be aware of how much owning a home will cost you. When it comes to taxes, it’s not as simple as “high means bad” – sometimes high tax zones have great tenant retention rates.
We recommend contacting the municipality’s assessment office, where they will be able to share all the tax information with you, including whether increases are envisaged in the future. We also recommend that you talk to current homeowners – they can be just as, if not more, valuable sources of information. They’ll be able to share their own experience with you as well as tell you about all the pros and cons of owning in the area.
As well as the financial and developmental aspects, choosing the right neighborhood is important as it will determine the kinds of tenants you attract and the length of time your space is vacant. For example, if you’re looking for young professionals and no kids, you’ll need to avoid areas with lots of families and schools. Likewise, if you want to avoid students and the long summer vacancies, buying a property near the university won’t be the best idea. In our experience, Rochester NY is a popular destination for renters of all kinds, which means it’s a good location for homeowners looking for different kinds of tenants.
Once you’ve narrowed down your choices, spend some time exploring the area. This means walking through the neighborhood, getting a feel for the community, and assessing the amenities such as parks, transport links, restaurants and anything else that could attract renters. A good place to find out more about what your area has on offer is City Hall, which often has promotional brochures on the local attractions and you might even find some potential property investments there too.
Speaking of attracting tenants, it’s always worth looking into the quality and number of schools that are in the local area. Good schools are often a huge attraction to an area and if your space is family-sized, this is definitely something to consider. Remember, your property is not just worth the monthly rental income but its overall value – and potential to increase in value – is something to keep in mind at all times. If there are no good schools in the local vicinity, this could damage your long-term investment potential.
Equally important is the local job market. If your location is experiencing a growth in employment, that’s a good sign that your property will likely increase in value as more people are attracted to the area. Look out for new businesses and large companies moving to the area as this can cause house prices to increase, which means rent can increase too.
If the job market isn’t the main pull of your neighborhood, you might want to look into the average commute times. If it’s well-connected or a popular commuter region, then you are more likely to find yourself with a wealth of potential renters to choose from.
Use a professional rental management company
Finally, experience and knowledge are one of the most valuable things to have access to when finding the right rental asset to invest in. This is why we recommend that future landlords consider hiring a professional rental management company. Rochester NY is currently a fantastic area for investment and, with an experienced manager on hand to answer any questions and do the fact finding, you’ll be the first to know the inside scoop on the area. Meaning that you can get the most out of your investment.
As you can see, there is plenty to consider when finding the right rental for you and your goals. Speak with one of our knowledgeable property managers at Torres Turn Key and we’ll help you get the search started.