Investing in rental property is always an attractive option. The thought of a continuous steady stream of passive income and the security it can provide proves vital to investors. To take advantage of this opportunity, you first need to carry out exhaustive due diligence to assess all the risk factors involved in the market. Identify a particular area you want to target and drive around to see the occupancy rates of property on the ground. Talk to property managers who serve that market to identify key trends that will inform your decision.
Look at the classified rental section of the local papers serving the area to get an idea of whether the market is ideal. If advertisers of rental property are offering rent-free periods as part of the package, it might indicate a soft market with fewer tenants. Investigate how the local weather patterns affect occupancy rates. Do people flock to the area in a particular season and leave during others? Acquire data for the target area to find out which part of town has consistently performed better or at least on par with the long-term average performance metrics.
Study the demographic makeup of the tenants in the area to …Read More