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Five Things (Beyond Rental Rates) to Evaluate in a Golden Valley Rental Property

Golden Valley Property Manager Evaluating a Rental PropertySuccessfully investing in rental properties requires a careful assessment process. Even though rental rates are, without a doubt, an indispensable part of analyzing any property’s potential, there are plenty of things beyond rental rates that ought to be taken seriously as well. Profitable rental properties tend to share a number of common features; these factors help maximize their value and earning potential. Beyond rental rates, the five most important things to look for in a rental property are appreciation potential, future development, property taxes, the number of rental listings in the area, and the local vacancy rate. By incorporating these five things in your rental property search, you will maximize your chances of successful rental property investment in Golden Valley.

Appreciation Potential

The current value of any potential investment property is at the top of the list for most investors. But probably equally important is a property’s potential to appreciate over the long term. Real estate investment is designed to build wealth over the years, even decades. That’s why it is crucial to look at potential investment properties from that point of view. Properties in areas that are growing or undergoing revitalization may be good candidates for strong appreciation in value, as are properties in the regions that consistently offer good employment and other opportunities.

Future Development

A second important aspect to consider when searching for a rental property is the area’s potential for development. A sector with a lot of new construction may drastically impact existing property values, either by increasing or decreasing them. When considering a rental property, it is essential to gather information about any plans to develop or renovate homes or other structures in neighboring areas.

Property Taxes

Together with the impact of future development, an area’s current and future property taxes are one more important thing to research. High property taxes are not automatically a reason not to buy the property, mainly if the house is situated in an extremely desirable area. In the same way, low property taxes may be a sign of declining property values or even a temporary feature, if the property is located in a developing area. In particular, homes located in the developing areas may experience sharp increases in property taxes as the city or region necessitates more services to meet the needs of a growing population.

Area Rental Listings

The number of rental listings in any particular area is an important aspect of assessing an investment property’s potential. If the surrounding area has a high number of rental listings, this could be a sign of a strong seasonal cycle or perhaps even evidence of a community in decline. An ideal rental property is located in an area with strong demand, which often correlates to a relatively low number of available listings at any given time. Regardless of the number of rental listings, it is important to find out as much as you can about the area before pursuing an investment property there.

Vacancy Rates

Just as a high number of listings is a reason to investigate further, so are high vacancy rates in the area. The more rentals that are available, especially if the number of rentals has exceeded demand, the lower rents must be to attract quality tenants. If rental homes are standing empty for weeks or even months, that is a possible sign of a saturated market. On the other hand, low vacancy rates could correspond to higher rents, allowing you to maintain a profitable investment.

In Conclusion

When checking for investment properties, it’s important to take a wide-ranging view of each property’s potential. By including these five aspects of your search, you can more easily regulate whether the rental property you are considering is right for you.

At Real Property Management Northern Arizona, we have a devoted team of Golden Valley property managers who will help you with this determination process and make your search more efficient. Our professionals are available to assist real estate investors through an array of quality services, offering our market expertise and data to ensure that your next rental property will help you come one step closer to your long-term investing goals. For more information, contact us today!

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