Features to Avoid When Buying a Rental Property

When buying a rental property, there are obvious and not-so-obvious factors to keep in mind that may affect the income potential of the home.

Too Many Stairs: A unit on a 2nd or 3rd floor without elevator access will not be attractive to many renters.

Small Room Size: Since most tenants move with their furniture, small room size can become a deal breaker.  For example, if a tenant has a king size bed but your property’s bedroom can only accommodate a queen, they will look elsewhere.

Not Enough Bathrooms: A family will typically seek homes with more bathrooms.  A three bedroom house with two bathrooms will rent far easier than a three bedroom house with just one.

Location: Sometimes an investor will purchase a home sight unseen, only to realize later that the house is located in an unreputable area within the city.  All major cities have these tough-to-rent spots, and the real estate price typically reflect this (hence, what looks cheap on paper might not be such a good deal.)

If you’re purchasing within Tampa, Orlando or Miami area, you can always ask us about the viability of buying within a certain area.  Our property manager will provide you with an unbiased view of the neighborhood you’re considering.

No Washer and Dryer: Some tenants do not like going to a laundromat, and will only rent if there is onsite or in-house laundry facility.

Outdated interior:  Old carpet and “the 80’s look” kitchen will turn off younger renters, who may be looking for newer kitchens, baths and hardwood floors.
What to Do If Your Home Has These Features

In a competitive market, renters will gravitate toward newer, more spacious units located in a safe, convenient area.  If your property has some of the undesirable features listed above, the rent may need to be lowered in order to attract renters.

Some issues can and should be fixed through renovation, such as adding a washer-dryer hookup, remodeling the kitchen or changing the flooring.  Investing in these upgrades can resolve vacancy issues and allows you to charge higher rent.