June 19, 2020

Are you looking for new residential properties to help boost your income? Investment properties can be very profitable if managed correctly. However, before purchasing new properties, there are a few things you should consider. This blog will go over the top 10 features that should be sought for a profitable rental property.

Before deciding to purchase a rental property, it is of grave importance that you do research. You should narrow down your options to several characteristics you desire of the property, such as size, type, location, and amenities. Once you have a general idea of what you’re looking for, will you then be able to commence the search. Things you should consider when searching for the right rental property in San Diego includes the following:

1. Neighborhood

The neighborhood where the rental property is located will determine many factors, such as the types of tenants you have and your vacancy rate. For example, if you live near a university, students will be your primary tenants, so you would probably struggle to fill vacancies during the summer. Make sure that the neighborhood is adequate for your goals and needs.

2. Property Taxes

Property taxes in San Diego vary, and you should be aware of how much you’ll be losing. However, high property taxes aren’t always a negative thing. For instance, high property taxes in good neighborhoods that attract long-term tenants would be a good investment. Unappealing neighborhoods with high property taxes would probably not be such a great idea.

3. Schools

You should take into consideration the schools around the property. Especially if the property is apt for families. Check for the quality and proximity of the schools nearby. This could influence potential tenants from living on your property or not.

4. Crime

No one wants to live close to hot spots of criminal activity. You should check the crime statistics of the area before making any considerations. You should check for the rates of the following:

• Vandalism
• Petty crimes
• Serious crimes

5. Job Market

Locations that have growing employment opportunities will attract a larger number of tenants. You can determine the rates of job availability by checking with the  U.S. Bureau of Labor Statistics (BLS). If you see an announcement of major companies moving to the area, you can bet on the workers looking for a home around there. San Diego is rapidly growing, so there are high chances of this happening.

6. Amenities

People that search for homes look for amenities that benefit them. Tour the neighborhood and check for parks, restaurants, public transportation links, gyms, movie theaters, and all other perks that may attract renters. Amenities are essential to many renters, so make sure that the property you’re interested in has a few perks you can show off.

7. Average Rents

Rental income will become daily bread, so it’s a good idea to check out the area’s rent rates. Make sure any property you consider can bear enough rent to cover your expenses. While conducting research, check to see how it is expected to be like in 5 years. Even if you can afford the area right now, if taxes are expected to increase, it could be bad news for you later down the road.

Key Takeaways

• Check out the neighborhood thoroughly (amenities and livability are essential)
• Research the area’s selling prices to get a sense of the overall local market value
• Research the average rent in the neighborhood to determine whether buying a rental property is financially feasible for you

Once you’ve found the perfect rental property, we all know that the story doesn’t end there. The property has to be managed and supervised. This can be a demanding job, especially if you’re looking for some good profits down the road. Experienced and knowledgeable property managers make profitability more possible. If the property management is taken care of professionally, you have a better chance of success. Good property managers help maintain a low vacancy rate while maximizing your monthly income. We hope this blog on the top 10 features of a profitable rental property helps guide you to purchasing the perfect rental property. If you’re in need of a property management company in San Diego, give Herridge Property Management a call at +951 364 4799 or email us at herridge.mgmt@gmail.com.