When choosing a property that is going to be rented later, you have to take into account lots of variables.
You have to ensure that the chosen property has enough space to accommodate at least two travelers. Also, it should be located in a good neighborhood. Another consideration you need to make is that the neighborhood should not pose a problem to your tenants nor should you pose trouble for them. In this article, we will talk about the best homes for private rentals, and things that you should take into account when buying such property:
● Go for dual key homes
Dual key homes have the advantage of bringing you more revenue than standard home. A dual key home fits from 4 to 8 tenants, so it’s ideal for families, groups of travelers, and couples going on a trip together. You can choose to rent them for long term or short term, depending on the option that best suits your needs.
● Buy property without furniture, improvements or decorations
If you want to buy a cheaper dual key home, then go for one without furniture or improvements. The furniture inside most homes for sale is already old and needs to be replaced, and no one wants to rent an apartment with old furniture unless restrained by a tight budget. Therefore, choose to buy an empty dual key home. As for renovations, it’s better to do them with a cheaper qualified company or with several constructors.
● Look for properties that need minor fixes
Though this is counter-intuitive since most prospective homeowners would prefer to buy houses without a problem. Looking for issues like a bee’s nest nearby, old air conditioning units, moldy ceilings that may need replacement can undervalue a property.
In fact, these problems can be a reason for you to lower the cost of buying the property as well. You can easily DIY minor fixes like replacing an air conditioning unit or replacing a portion of the ceiling.
However, don’t just look at the surface value of a house. Moldy ceilings can also mean that there are internal problems you might face like rotting woodwork behind the walls. Always weigh your options, though problems can undervalue a property, it can also increase its renovation costs to hundreds or even thousands.
● Complete Paperworks
Always check if the property you’re going to buy complies with every government requirement in building a property. This is true, especially for a house built in the last decade or so. Older houses may be cheaper but if you don’t have the proper paperwork, you may as well look at potential demolition if a property does not meet the government’s safety requirements in building a house.
Going cheaper isn’t always about how much you can save now. It is all about how much you can save in the long run. Considering your overall cost of value and cost of ownership are things you need to consider. If you’re looking for a property that you will renovate, make sure that you calculate the cost of renovation as opposed to buying a property that you don’t need to change anything at all.