When it comes to real estate investments, getting a property that you can rent out is considered to be one of the best options. You get a regular inflow of income through monthly rents. It is one of the few investment options that give you a guaranteed return on investment. This could be the reason for the rising demand for rental properties in Canada. As per a report in the Globe and Mail, rental housing is outpacing ownership, driving rent prices higher and deepening Canada’s Housing Affordability problems. The trend of rising rental listings is most likely to continue in the years to come, changing the housing scenario in Canada.
But, is merely having a rental property enough to fetch you guaranteed returns? The profitability of your rental property depends on a couple of factors. Let’s take a look at some of them.
1. Safe and secure neighborhood
One of the most important and reasonable requirements for tenants is a safe and secure neighborhood. They want to live in a place that has low or practically zero crime rates. So, if you intend to make a profitable rental property investment, then you ought to buy your property in a safe neighborhood. The building should ideally have a strong security system, patrol police service, and proximity to the sheriff departments and police stations.
2. Presence of good schools
Some tenants are likely to have children or may plan to have them in the future. Either way, having high-rated schools near the rental property will significantly increase its profitability. This factor is a key contributor to the decision-making process for families with school-going kids. So, as an investor, you should look for properties in localities that have the best schools and learning institutes.
3. Availability of medical facilities
Another key feature of a profitable rental property is the availability of good medical facilities near the rental property. If you would have gone through any of the rental listings online you may have noticed that some of them specifically mention the proximity to hospitals and clinics as a key feature. So, if you plan to purchase a rental property, then do sufficient research to make sure there are quality medical facilities in the neighborhood.
4. Good transport services
Availability of adequate transport facilities is an important part of rental property investment. Tenants expect to have a good network of roads and proximity to buses, airports, and trains. In Leduc, there are quite a few rental properties that are well connected with all modes of public transport.
Sanitation is the most basic expectation of any tenant. So much so, that you can’t talk about the features of a profitable rental property without talking about sanitation. Tenants tend to avoid places that are not hygienic. Simply put, will you prefer having your favorite dish in a really dirty plate? Obviously not! It’s because hygiene and sanitation is the key to good living conditions. Your property may be extremely luxurious on the inside but if it is located in a really unhygienic place it loses its value.
6. Plenty of job opportunities in the vicinity
It’s always a plus, to live in a place that has a lot of offices nearby. Neighborhoods with higher employment opportunities tend to attract more tenants as opposed to purely residential zones. So see to it that you do your research about the companies that are located in a particular neighborhood. And watch out for announcements of big companies moving into particular areas. These places will attract a maximum number of tenants as there will be more employment opportunities in the neighborhood.
7. Ample parking space
This is a possibly one of the least discussed requirements of tenants. With the rise in the number of motor vehicles on the streets, finding parking space can be difficult at times. A lucrative property is usually equipped with sufficient space for their tenants to park their vehicles. Considering the dearth of parking space in most regions, tenants usually take into account the availability of sufficient parking space in their prospective rental property.
8. Reasonable rent and property tax
Given a choice, everyone wants the best buy wherein they get maximum amenities for a minimum price. But as an investor, you cannot be doing charity. So, make sure when you purchase the rental property, you find out about the average rental pricing in the area. This will enable you to come up with a suitable price for your tenants. And make sure you take into account the mortgage prices, property tax, and other expenses while deciding on the rental amount.
If you are on the lookout for a suitable rental property or already own a property and want to get it listed, then reach out to us at the earliest. AtRental advisors, we take care of all your property management requirements. Our key landlord services include free property evaluation and property management contracts. We also provide rental listings for prospective tenants who are on the lookout for good properties.