Posted on: 29 April 2020
Townhomes don't have a large footprint but are large enough for a full family, which makes them an ideal rental investment opportunity. A few attributes will ensure your investment turns out to be a profitable move as a landlord.
Look for townhouses that have been well-maintained.
If you are buying a used townhome to rent out, you should always start out with a property that has been well-maintained in the past. Even if you do have money to invest in the property before you rent it, there can always be unseen problems that will come up after a tenant is actually living there.
Make sure the property is in a desirable location.
Get familiar with the neighborhood where the townhome is located on a more personal level. Go to the property and spend some time there, and see what is taking place on a typical weekday or weekend. How quiet is it? Do you feel safe when you step outdoors? Is there a good view or a grocery store nearby? These are the types of things that a tenant will be considering when they stop in to see the property and decide if it would be a good place to live. Things like a lot of crime in the area, a lot of noise, or lack of accessibility to necessary stores, schools, and doctor's offices can reduce how much tenants will be willing to pay to rent the townhouse.
Find townhouses for sale that are likely to hold their resale value.
Not all townhomes are going to retain a stable resale value down the road. For example, if you find a property that is in a location where many residents have started to relocate due to a local factory closing, the property value here is likely to fall without drastic changes in the local economy. As someone looking to invest in the property to make a profit from renting, a lowered real estate value can also mean you will have to lower tenant rent to retain prospect interest.
Seek out properties that have some outdoor living space.
Outdoor living space doesn't have to be substantial, but it is an attribute that should be present on some level. Even if it is just a modestly sized backyard with just enough space to walk a dog or allow kids to play, this can make all the difference in how attractive a townhome can be to a prospective renter. As you work with a realtor to find properties that would make a good investment, make sure you do outline some outdoor living space as a must-have.
Look for townhouses for sale in an area you like.Share