We all know that buying a home can be a smart investment. But what about purchasing a property with the intent to rent it out to tenants? There are many factors that contribute to potential success as a landlord. How do you know if a property would get a good return as a rental property?
Many neighborhoods in the greater Wilmington area are prime spots for profitable rental properties. Wilmington is a college town – many students and young professionals live here for a few years while they’re getting settled or figuring out their next move. As a result, Midtown and Historic Downtown Wilmington are ideal places for rental properties because UNCW is a short drive away. The other major rental market in Wilmington is our steady influx of summer visitors. As we at Network Real Estate can attest, short-term coastal rentals can be a great investment for homeowners, especially during peak summer months. Those with homes on Wrightsville Beach, Kure Beach or Carolina Beach can see impressive returns on their ROI if their property is managed well.
Putting the geographic factors aside, deciding whether to rent out a property has plenty to do with the space itself. Renting a house is a nice alternative for students, young professionals and small families who don’t want to live in gigantic apartment complexes but aren’t ready to purchase their first home. Beyond the price and number of bedrooms, there are a few other important factors that can make your rental property appeal to these tenants. Your rental will appeal to more tenants if:
- The property has more than one bathroom.
- Your property is accessible. For instance, if the property is a walkup or has very narrow corridors or stairways, it may ward off potential renters who think they won’t be able to easily move in or out.
- There is ample parking. A driveway is ideal, or at the very least parking that doesn’t require a permit.
- It has a fenced-in yard. This is a major factor in rental appeal, and can set your property apart from other rentals in your neighborhood. Many tenants are willing to pay a little extra for a yard their dog could run around in.
Generally speaking, the property should be in good condition. While it’s true that renters may not be as discerning as buyers because they aren’t looking for a permanent home, don’t expect to get a big ROI on your fixer-upper. Invest in repairs and maintenance, and you (and your tenants) will be happy you did.
Network Real Estate provides full-scale rental management services in the greater Wilmington area. If you don’t want the hassle of being a full-time landlord, let us do the work for you! If your current home meets these standards and you’ve been considering renting it out, now is a great time to get started. Network Real Estate also has plenty of houses for purchase that would make excellent rental properties or a beautiful home for you and your family. Contact us to find out how we can help you invest in Wilmington real estate today.