Both tangible and intangible characteristics depends on if you are looking at a great rental property. Each investor will have his or her preferences for what constitutes a great rental property, but there are a few universal characteristics everyone can agree upon. Here are some ways to turn your investment into a great rental property in Fort Wayne.
Location
You will have plenty of tenants to choose from if your rental property is in a great location. Your property will always be in demand, and you should experience low to no vacancy rates. Of course, you will still need to factor in the suggested vacancy rate to your rental proforma. Great rental properties are usually near high performing school systems, grocery stores, shopping, entertainment, and may also be a short drive from major highways or other large attractions in the state.
Cash Flow & Growth Potential
If you have a great rental property, then you will have a positive cash flow every month with minimal expenses and minimal vacancy. It will also be great if it has growth potential. If it is in a great location and demand is high, you will be able to justify raising the rent especially if one tenant moves out and another is lined up to move in. Be sure to keep an eye on the Fort Wayne market rental rate and stay close to that. You may deter some tenants/applicants if you mark your rent too high.
Property Condition
A great rental property will be in excellent condition. Investing in some upgrades to the kitchen or bathrooms at the time of original investment, will overall be worth it. Tenants are willing to pay for quality. The better the condition of the property, the fewer repairs that will need to be made, and less likely the tenants will take it for granted. In general, they will work to keep the property in great shape for you!
Property Management
To maintain your great rental property you may want to consider hiring a property management company. They will turn your investment into a great rental property. For help selecting a great property manager in Fort Wayne or IN, give Reliable Property Group a call at (260) 222-4088 to discuss your needs and intended level of involvement. You want to make sure you maintain the integrity of the structure and surrounding yards, all major appliances, and HVAC systems.
Property Value
A great rental property will be valued at more than you paid for it! You may have to purchase your rental as a distressed property and put some money into it. Your property value should slowly rise and make for a great profit in the future if it’s in the right location with the right demand. Just make sure you hang on to it for more than a year, the longer the better for reduced capital gain taxes. When this happens, it makes for a great exit strategy.
Market Trends
It is important to keep an eye on market trends for your rental property in Fort Wayne. Your rental needs to be kept up with the rental rates and property value. This will help your property make as much money as possible for a great rental property. By keeping an eye on the market, this will let you know when the best time is to sell your investment. If the market starts taking a downward turn, you want to make sure and sell your rental property while it will still make you a profit!