The old adage of “location, location, location” is still relevant today when it comes to choosing a rental property. There are a lot of ways you can go wrong with the location, but the good news is that most of these can be anticipated. When selecting a good rental property, Davies Property Management advises sizing up a few key aspects of the area to determine whether a potential Edmonton rental investment property is a worthwhile investment.
Get to the Know the Neighborhood
Take some time and visit the neighborhood. Drive around the neighborhood, parks, schools, shopping. Check for For Sale and Rental Signs, and get a good idea of the demographics of future tenants to assist you before moving forward with a property purchase. For example if pick a property near a highway or greeway, your future tenants may consists of people that need to commute out of town and work out of town. Knowing this can help you evaluate potential turnover rates and take that into consideration when planning your Edmonton rental investment property. You can also use local resources to look up crime statistics and any other vailable information on crime history in the area, average income in the area that could help avoid making a poor purchase decision. A g=few good resource that we have used are:
Think Like a Renter
After getting to know the beighborhood a little, you should have a better idea about the demographic of your future tenants and what their goals might be. Based on this, think about proximity to schools, public transportation, shopping, and job opportunities that could be important to your future tenants. Doing a little research on education and employment options in the area will not only help you know whether the location is a sound investment, it will also help you in marketing the rental later if you choose to purchase the property. As a bonus, stable companies and quality schools will ensure the area does not lose its property value over time.
Go in with your Eyes Wide Open
At the end of the day, your Edmonton rental investment property is only as good as the profit it turns and the benefit it brings you. Understand your long-term costs, reapirs and maintenance expenses and appreciation to better evaluate potential return on investment.
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