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6 Tips for Finding the Perfect Property to Lease
May 29, 2024

6 Tips for Finding the Perfect Property to Lease

33 realty
6 Tips for Finding the Perfect Property to Lease

As the need for leased properties is steadily increasing as more people are looking for a place to live or work, so is the profitability of rental properties. Leased properties offer a cost-effective alternative to buying a property outright, making them attractive to those who need a place to stay or work but don’t have the funds or resources to purchase one outright. They also provide flexibility and convenience for individuals who may need to move around frequently due to their job or lifestyle.

Finding the perfect property to lease for investment can be a challenging and time-consuming process. It requires extensive research, careful consideration of various factors, and a keen eye for detail. However, with the right knowledge and approach, it is possible to find the perfect property that will yield high returns in the long run.

Starting to Find the Right Property to Lease

By researching different areas, understanding local market conditions, analyzing rental rates and occupancy trends, as well as considering factors such as taxes and insurance costs, investors can identify properties that have the potential to generate income in the future. Additionally, they must ensure that they are selecting properties within their budget while also considering their desired return on investment. Here are some important factors to consider when finding the perfect property to lease:

Check Out the Neighborhood

Different neighborhoods have characteristics that can affect your potential return on investment. Factors such as crime rate, local amenities, and infrastructure can all impact the value of a rental property. Additionally, the type of neighborhood may also influence the demand for rental properties and therefore affect its potential profitability. For example, if you purchase property near a college, you can expect to have many students as tenants. By researching a neighborhood’s features and understanding how it may impact rental investment property, investors can make more informed decisions about their investments.

Know the Property Tax Burden

Knowing property tax rates in your target areas will help you determine your overall bottom line. However, purchasing properties in a high-tax-rate area is not always counterproductive, as higher taxes often indicate more desirable areas, which, in turn, can lead to better long-term tenants.

Understand the Job Market

The presence of a thriving job market means that there will be more potential tenants, and this can lead to higher rental rates and increased demand for your property. Additionally, the stability of having a strong job market will ensure that your tenants are more likely to stay longer, providing you with consistent income over time.

Be Aware of Future Planning

The local municipal planning department will have information regarding plans for new construction, zoning, rezoning, and other development that may affect your potential rental property. Lots of growth can be a good thing, showing area improvements and driving more jobs to the area. However, be aware of projects with the potential to hurt the value of your property, such as rock quarries, industrial parks, and more.

Take Stock of Vacancies

Purchasing rental property in an area with a lot of vacancies can be a risky investment. Vacancies can mean that the area is not desirable, or that there are too many rentals on the market for the demand. This could lead to difficulty in finding tenants and difficulty in maintaining your rental property. Additionally, if there are too many vacancies, it could lead to an overall decrease in property values and make it difficult to sell your rental property later.

Pay Attention to Average Rents

Understanding the average price of rentals in your desired investment area is a critical factor in determining whether purchasing a property will be a good investment. The average price of rentals in the area will assist you in determining if your property will produce enough income to cover your expenses, including mortgage, taxes, maintenance, and more. Do your research to find out if taxes in the area are escalating, as skyrocketing property taxes can make an affordable property now untenable in the future.

33 Realty Can Help Make Property Investing More Profitable

At 33 Realty, we help our clients conquer every aspect of the real estate investment process so they can be more profitable, with less stress. Our team of seasoned experts can help you create or maintain a profitable portfolio of rental investments. Not only can we assist you with locating and purchasing properties in lucrative areas, but we can help you market your rentals to find high-quality tenants and also manage and maintain your properties to keep them producing income for years to come.

Whether you’re looking to buy your first real estate investment property, or you want help managing a working portfolio, our team can help. To get started, contact us here or call 773-839-4728.

Written by:
Mark Kurgan
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