Pick the Right Neighborhood for Your Rental Property Business
In the right neighborhood, your investment can thrive, resulting in steady rent checks at market rates. However, in the wrong neighborhood, you may lose revenue or suffer from low vacancy rates.
It's advisable to get help managing your property in Toronto from an experienced and professional company that can help you write a rental lease and match with a great tenant. They can also help you negotiate a fair price for your investment in a great location. Here are a few signs of a good neighborhood for your rental property business:
#1 Well-Maintained Streets
Look for well-maintained homes with clean driveways and nice lawns that have good curb appeal. A neighborhood where homeowners invest in home improvements such as re-roofing, painting, landscaping, new gutters, and replacement windows will attract good tenants. Watch out for kids playing freely and residents walking happily in the summer. Consider talking to some of them to learn more about the area. Also, come back at different days of the week at various hours of the day for a more complete picture.
#2 Thriving Local Businesses
If there are healthy local businesses in the area such as restaurants, bakeries, cafés, grocery stores, or banks, then it could be a good neighborhood. However, if such businesses seem to be empty, then the area could be experiencing a downturn. Likewise, properties close to many payday loan shops, tattoo parlors, pawnshops, and massage parlours may be an undesirable investment.
#3 Good City Services
Look at the streetlights, sidewalks, and roads. If these are in good and clean condition, then the neighborhood has access to city services and will attract a desirable renter.
If you live in a country where schools are assigned to neighbourhoods, then check school ratings in the area. If the schools have decent reviews and aren’t making the news for the wrong reasons, then it’s a desirable location for a family-oriented renter.
#5 Nice Parks at a Walking Distance
Look for a neighborhood that has at least one clean park within walking distance. Families love homes that are close to such amenities.
#6 Low Crime Rates
Check crime statistics in the area. You can usually find these numbers of city police websites. Safe neighborhoods will make good rental property investments. Also, neighborhoods with block watches and regular meetings usually have stronger communities.
#7 Public Transport
With the costs of living rising, and many tenants growing environmentally conscious, neighborhoods close to public transport are growing in demand. Look for a property that has access to buses and is close to a subway station. If it is further away from the city core, then look for neighborhoods closer to highways or motorways. At the same time, homes that are too close to public transport and suffer from noise pollution can be undesirable for tenants.
These are seven things you should look for in a neighbourhood when entering the rental property business. Of course, inspecting a neighborhood on your own can be challenging. Partner with a good property management company that can do the legwork and help you make a wise investment.