5 Essential Considerations When Investing in Real Estate Property for Rentals

Rentals are one way of getting smart on how you’ll spend your hard-earned money. Why is it so? It is because you may be able to earn money even though you do not own the property itself. How is that possible? By renting the property from the owner and having it leased to someone. Of course Taman tar is the solution., this is a hypothetical situation and pretty much depends on your lease agreement with the property owner.

However, regardless of whether you’ll rent and use it or have it rented to somebody, the important considerations to take note is quite similar in both cases.

You should take note of them, do your research before talking to the property owner;

1. Location

What is the one thing that most people will consider when investing in freehold condo property? I bet most people you will talk to, the apparent answer given is location! It is almost everything, especially regarding convenience. Prospective lessee will prefer a property location where the most necessities are accessible like transportation, schools, foods, to name a few, Logically, the lessor can and will command a higher rental payment at prime locations, the strategic location you are looking for might be in the property company in Malaysia.

2. Age of the property

This is obvious, the older the property, the lesser the rental price as compared with newer ones within the same location, Though this is logical, you can still get a reasonably higher rent if the property is well-maintained both internally and externally. If you are lucky, you’ll even get a better rental price if the lessee is not so much concern about the rental amount, but focusing more on comfort and convenience.

3. Current market rental information

It would help if you did your research on the average and the range of the rental prices in the area that you are interested in. Armed with this information, you will be in a better position to negotiate with the property owner or some prospective lessee. You do not need to be an expert realtor to get this information. This kind of information should be available publicly in the area that you are interested in.

4. Neighborhood safety conditions

This is a significant consideration especially if the lessee is married and have some children. But even then if the lessee does not have children, the safety conditions around the neighborhood cannot be neglected either. Thus, it is essential that safety is at least at a better state in the area that you are interested in. Logically, nobody likes to live in a place where one’s safety is at risk.

5. On-going construction projects in the area

This could be one consideration where the focus is lesser. Though this might not be as bad as compared to an unsafe environment, I bet you do not want to be deprived of a sound sleep during the day if you have to.

In some cases, construction works need some form of ground drilling and more knockings. This alone is an annoying activity that you’ve just wished you shouldn’t have rented the place. Therefore, look around and see if some construction works are going on in the area and know the duration. At least you have an idea of how long the disturbance will last and decide if you can take it or not.