Features of a Profitable Investment Property
Whether you are looking to rent out a room or an entire building, a profitable investment property is one that will attract good tenants who are willing to pay for a quality location and a better lifestyle. It begins with finding a great neighborhood and then shopping around for a property that is meant to impress.
Location, Location, Location
When searching for that investment property, pay attention to the neighborhoods. Do the apartments and homes have welcoming curb appeal and appear well maintained? To attract quality tenants and keep them, you'll have to impress them even before they get in the door. Keep in mind that a rental property in a well-kept, prime neighborhood can command a higher rental price than a similar property elsewhere. That's doubly true if your investment property is close to a popular beach or nestled in an eye-catching forested area.
Once you've impressed potential renters with the neighborhood, it's time to get them into the home or apartment. Homes with high ceilings and impressive entryways deliver that prized "wow" factor. If the hallway leads into an open-floor plan living area – one that combines the living room, dining room and kitchen into one big entertaining space – that’s even better.
Other impressive features might include a master bedroom with en suite bathroom, oversized walk-in closets and walk-in pantries. Backyards with outdoor entertainment areas are a hit, with or without pools. If there's enough open green space for kids and pets to run around in, you'll attract families. Single-family homes that include enough parking for all the residents may also bring a higher rental income.
Good Public Transit Options
If your investment property is close to excellent public transportation, you'll provide an opportunity for renters to live car-free. For example, if you invest in a condo in San Francisco near downtown, you can easily get to work using Muni buses, the Bay Area Rapid Transit and Caltrain rail systems, or even by bike. And, it's easy for business travelers to get to the San Francisco International Airport.
Anytime you invest in a property that is helpful to the environment, you tend to attract quality renters that don't mind paying a bit more to help save the planet.
Neighborhood Amenities and Services
According to the American Planning Association, the best neighborhoods have a mixture of residential, commercial and retail space. They offer a chance to get to know your neighbors as you stroll down Main Street and through nearby parks. Neighborhoods that are home to shopping malls, city parks and dog parks, restaurants, pubs, theaters and other entertainment venues tend to command good rental rates. Residents recognize the value of having the family doctor or that favorite restaurant nearby.