It’s vital to select the right area to buy a rental property, explains Francois Joubert in Become a Master Property Investor in 90 Days
If you give this careful consideration, you’re more likely to have potential tenants queuing up.
Think about where the property is before you buy
When you select where to buy a property to rent out, you need to think about these six factors…
Beware of areas that are very dependent on the success of a single firm or industry.
You don’t want to find your pool of potential tenants has suddenly disappeared when a large company moves its works or an industry goes into decline.
Areas can be vulnerable to natural and industrial factors.
You don’t want to see your property appear on the news with water halfway up the stairs or a landslide taking over the kitchen.
The best way to check for any possible natural problems is to ask for a soil report. You’ll have to pay for a soil engineer’s time, but this cost is more than justified by the peace of mind it buys you.
Don’t buy next to:
An electricity pylon, whatever the scientific rights or wrongs. You’ll find it more difficult to get tenants.
A school. It’s widely seen as noisy and is likely to cause traffic problems.
A pub or restaurant. There is a chance of evening disturbances.
Visit a property at different times of the day and week before buying.
You don’t want to buy a house in a ‘quiet’ suburb that you’ve viewed more than once, but never in rush hour.
An apparently small and quiet street could turn out to be a very popular shortcut from one major road to another. Or for a couple of hours in the morning and evening, a heavy stream of traffic thunders by the door.
Not quite what you had in mind!
#4: Local amenities
A decent variety of shops nearby is always a welcome feature for tenants.
Good local schools are a plus if you’re buying a family sized property.
#5: Main roads
As a general rule, avoid properties on main roads. But in some locations, the benefits may outweigh the disadvantages.
#6: Proximity to commercial premises
The same is true of residential property close to commercial premises.
The cheaper price may give you a high rate of rental return, but try not to be too close to restaurants, fast food outlets, pubs or bars.
Think cooking smells, fumes and noise from air extractors, increased traffic and parking problems, and increased general activity, disturbance and noise…
There you have it, six factors to consider when you choose the location of a property to rent out.