LocationYour property must be in a good location where people are likely to rent. Ideally, the home will be close to local shopping, dining, retail, hospitals, and highways for an easy commute to work. Neighborhoods are important. Tenants want to live in good, popular communities with swimming pools and tennis courts and playgrounds. This is usually an HOA community with well-maintained lots.
Simple MaintenanceLook for a home that’s easy to maintain for you and your tenants. Level lots are great, and one level homes are more popular for more people. There’s a larger group of potential tenants you can rent to when you have everyone on one level. Make sure the property is adequately updated. You’ll have an easier time renting out a home with granite counters, updated bathrooms and kitchens, and modern floors and lights.
HOA RulesIf you’re in an HOA, make sure they allow rentals in the community. Some associations will not allow rentals, so check that out before you buy or list a home for rent. See what kind of fees and rules you’ll need to follow. The HOA may require you to add something to your lease, and they may want a copy of your lease on file. A lot of HOAs are charging annual lease fees to the owners. Make sure you understand these costs because they are part of your cash flow equation.
Functional SystemsYour rental home must have up to date systems and working smoke detectors. Some states require carbon monoxide detectors as well. Make sure the air conditioning, plumbing, and appliances are all working and up to code.
Financial ConsiderationsMake sure you’re in a rent range that’s sustainable in your area. Don’t buy a $3,000 per month property when the average rate in your community is $1,600 - $2,000 per month. You’ll sit on the property and lose money to vacancy. It’s better to spend less money on a smaller property in a reasonable price range. You won’t have to worry about vacancy and you’ll get a better cash flow.
Look for an easy to maintain property in a good location. Make sure you understand the rules and regulations of your HOA, and make sure it cash flows. You’re not buying an investment to lose money or to bank on equity and value increases. You want to cash flow monthly and earn money. Hiring a company that provides property management in Alpharetta and the surrounding areas is a good way to make sure you’re earning as much rent as you can while keeping your expenses low.