Owning a rental property is the right step to increase the coffers of your wealth. The existence of property makes it easy for you to get passive income without the hassle of working from day tonight.
If you currently have the money collected and want to find a house to rent, you need to pay attention to several criteria that make the rental home has value in the eyes of tenants. The important criteria which we will explain below will greatly influence the amount of public demand for these rental homes.
Let’s look at the explanation further so that you can learn property investment.
★ Facilities That are There
People who live in an area not only need a place to live but also need a variety of entertainment and various other facilities.
The location of a property is said to be strategic if it is close to malls, shopping centers, public transportation facilities, health facilities, cinemas, and so forth.
★ Property Tax that Must Be Paid
The thing to know is that property taxes differ from one region to another. Therefore, it is important to know the amount of tax to be paid so that rental income does not cover the amount of tax available.
Don’t worry too much about high taxes, and if the area is strategic and has a lot of potential tenants, there’s no harm in buying property there.
★ Pay Attention to The Environment Around The Property
The environment or location where a property is located will greatly affect the type of tenant who will rent. If the location of the house or property owned is around the university or school, then students and students who attend school, there will become potential tenants.
★ Existing Job Opportunities
An interesting factor for many tenants next is whether the location of the property is close to the work location. If your property is in an industrial or corporate area, then the employees who work there have the potential to become tenants.
Or it could be when a new company will be built around the location of the property, this also greatly affects the employees who will rent the property in your place.
★ Close to School
This criterion is very important to consider if a family is your target. It’s useless if you have an excellent property, but quality schools around the environment are very minimal.
★ Future Development Plans
A property is considered valuable not only from the current situation but also from future development plans. If the area is built with high-quality apartment buildings, malls, and schools, then the area can potentially have very good growth.
Future development can also potentially harm and affect the competitiveness of your property. For example, there are plans to eliminate green open space or the existence of new housing that has the potential to provide competition for your property.
★ Real Property Rental Income
Rental income is the potential passive income that you will get when you own a property for rent. Make sure you know well what the average rental costs are around the neighborhood. So, don’t let you set a rental price that is too high or too low.
If you want to set a rental price that is higher than the average rental fee, make sure you provide additional value to the tenants first.