How To Evaluate a Single-Family Property Before You Invest

How To Evaluate a Single-Family Property Before You Invest


How To Evaluate a Single-Family Property Before You Invest

When choosing a single-family rental property to invest in, you want to ensure that the property will be profitable and worth the investment long term. There are a few qualities buyers look for that you should make sure your rental property has. To get you started, this article will review how to evaluate a single-family property before you invest so you can get the most out of your rental real estate.

In general, you want the property to meet as many of these requirements as possible to mitigate tenant turnover. A high rate of turnover will reduce the stability of your profit.

Is It Near a School or Daycare?

Most often, single-family home tenants have children of different ages. Tenants will look for a home that is near a school or daycare to minimize their commute. The closer the property is to a school, the more renters will look into your home.

How Safe Is the Community?

You should be aware of the crime rate in the community and how active police are in the area. While not everyone has the luxury of living in a safe neighborhood, families want to live in the safest place possible. Therefore, families will generally pay more to live in a home they feel safe in.

What Amenities Does the Home Have?

The rent you charge will depend on the amenities the property offers. Renters, especially family home renters, want at least the basics, such as air conditioning, an oven, a microwave, and a dishwasher. However, they will pay more for additional amenities, like an in-home washer and dryer, a fenced-in yard, or a pool.

While your property doesn’t have to have all these amenities, you should be aware of what families are looking for and how much they’ll be willing to pay for it. This includes the community itself. For example, if your community has a neighborhood watch, a golf course, or other additions, higher-income families will be inclined to rent in that area.

Are Hospitals, Shopping Centers, and Other Necessities Nearby?

Any rental property, single-family or not, needs to be close to the essentials if you want to make as much profit from your property as you can. If their home is miles away from a grocery store or hospital, that can scare off renters, especially families. While being near malls and other family-friendly activities is a plus, being near facilities that are essential to everyday living is more important to family renters.

Now that you know how to evaluate single-family properties before you start investing, you can invest without a worry in properties that will make you a sizeable profit. If you’re managing multiple single-family home properties, contact a leasing and property management company to help you make the most out of your investment!

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