This is one of the popular methods in making passive income. The concept is very much straight forward. You buy and property and rent it out to other tenants. Each month you receive income from the rental. At the same time, you can wait till the value of the property increases. Before you do that, you should keep some things in mind.Buy And Rent Out Click To Tweet
Who Are You Renting To?
Target market is essential when it comes to finding your tenants. They can be working adults, students or even families. As for students, they would preferably rent a place nearby their college or school. It also depends on their budget and whether there are good public transportation facilities within that area.
As for families, it is entirely different compared to students. They would want a safe and quiet place. The place could be nearby any recreational area, malls and health facilities. Moreover, the property is encouraged to have enough bedrooms and space for a family.
Also researching on the area surrounding the property will help in renting out your property. You will have to go to the extend of checking whether the environment is healthy. For an instance, the property should have proper drainage systems.
Working executives have their very own preference as well. Entertainment aspects are to be highlighted. Malls, movie theatres, gym and good restaurants should exist nearby. They would not really hesitate to pay a higher rent for a better place.
What Is Your Budget?
You would want to rent a figure that will cover your bank loan right? Or else, there would not be a point of buying an exclusive condominium if you cannot a get good rental rate.
Keep in mind of how you need to borrow and the monthly installments. Figure out how much rental can you get for the property. Calculate how much rental needs to be charged in order to cover up your bank loan.
Will You Live There?
This questions is not actually directed to whether you, yourself will live in that property. Put yourself in another person’s shoes and evaluate whether you would want to live in that area. If yes, then there are higher chances that it will be a good investment property to give out for rental.