How to Buy a House That's Easy-To-Rent
From your Home Buying/Selling Guide
If you plan to become a landlord, do your homework before you buy to find out what type of dwellings are in most demand in your area.
Difficulty Level: Average
- Talk to rental agents. An agent who handles a large number of rentals can tell you what type of full-time or vacation home renters are looking for.
- Read newspaper classifieds to determine which types of properties seem to be most popular, and how much they are renting for during all seasons the home will be available.
- If the area attracts lots of senior citizens, one-level living may be the best choice, or at least a house with main living quarters on the first floor. Avoid homes where renters must climb a flight of stairs to reach the entrance.
- Read real estate magazines for terms highlighted by REALTORS®, such as 'view,' 'golfing,' and 'stream.' If agents continually mention an item, it's likely in demand. Try to find a property with one or more of those features.
- Look for a property within a reasonable distance of shopping and area attractions.
- Find a well maintained home, or plan to do an immediate fix-up. A shabby appearance won't attract renters, but will decrease rental fees.
- Before buying a home in a development, make sure the restrictive covenants allow rentals.
- Get a quote for homeowner's insurance, telling the agent you plan to rent the home. Ask if the agent has any special recommendations for landlords.
- Talk with an accountant to verify that the income you can realistically expect to receive is appropriate for the home's purchase price and projected maintenance fees.
- When you talk with rental agents, be sure to ask about their fees and services, especially if you won't be around to handle rentals yourself.
- Many condominium managers handle rentals within their resorts.
- If the residence is in an area with high tourist traffic, find out if your best scenario is long or short-term rentals.
More How To's from your Guide to Home Buying/Selling