How to determine a good rental property


Every investor’s intention is to make good investment on their real estate property. So, either as a pro or newbie, the goal is the same. A real estate ‘pro’ is expected to know what determines a real estate investment. So let’s consider this article as a guide to investing in rental property for beginners. It is important to know how to determine a good rental property in order not to run a loss on your real estate investment.

There are things to look out for in a rental property, i will talk about the most important factor

*LOCATION*
The location of the property is one major factor to consider when searching for your first rental property. This is because the location of your property will determine if you will make a good profit from your investment.

The property’s location dictates the type of property available and how much value such property is worth. For instance, the type and value of a property in Lekki will differ from the one in Agege. This is because of the potential values of the properties which are significantly affected by location. The perception of one being in on the Island and the other on the Mainland automatically affects the price because of its surrounding. The location of a property also decides the amount you charge for tenancy. You don’t want to have your property empty because you overcharged compared to your competitor.

The location of a property is very important in terms of security because if a property is situated in a place with a high crime rate, the possibilities of people patronizing you for rent will be low. No one wants to rent a house in an area where they can’t sleep or wouldn’t be able to walk freely for fear of being shot by stray bullets. It is therefore important to carefully observe an area security wise before making a purchase. Also, when buying a property, you should look for damages like broken windows or door which might be hints of burglary on the property.

While the location of a property can mar the value you get, it can also be the reason you are smiling to the bank. For instance, having a property for rent in a student residential area means you will get fairly regular vacancies which equally translates to income. Same as how a property close to businesses will offer more value *(Best Example is Ajah-Ibeju Lekki Axis)*.
The location’s property can also help you decide whether to invest in the area or not because if a particular area has a lot of vacancies, it is either it is a flag off as people are leaving the area or it is a sign to invest.
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