If you’re looking for your next investment property, it’s essential that know as much as possible before entering the transaction. The last thing any rental property owner needs is to discover unwelcome or expensive surprises after the deal is executed. One of the best ways to catch any potential red flags that could indicate future problems with the property is to thoroughly check certain things during the viewing. Here are the top 7 things you should always check before buying an Indianapolis rental property.
- The age and condition of the property. This includes both basic details about the property’s past as well as the structure of the property and its condition inside and out. Look for signs of water damage, mold, cracks, or other structural issues that could be costly to repair down the road. Have a professional inspection completed to ensure no underlying issues could come back to haunt you.
- The rental history of the property. If the property has been used as a rental in the past, ask about previous tenants and check rental records, if possible, to get a sense of how well-maintained the property has been. This can give you valuable insight into potential issues with the property.
- The rental rates for similar properties in the area. Look at rental rates for other properties in the same neighborhood to see if the rental rate is competitive and in line with market rates. If not, this could be a sign that the rental property owner is trying to get more for the rental than it’s worth.
- The shape and size of each room. Look carefully at the dimensions and layout of each room in the rental property. This can help you assess whether there may be any issues with the poor flow or inadequate storage space, which could negatively impact your rental rates and tenant satisfaction over time.
- Elements that may need updating within the next five years. Give special attention to any elements of the rental property that may need updating soon, such as the roof, sprinkler system, water heater, air conditioner, appliances, and windows. This can help you plan for larger renovations and maintenance costs down the road.
- Any potential safety concerns. Always check for smoke and CO detectors, poor lighting, wiring issues, leaking pipes or faucets, and wobbly toilets, all of which can be serious safety hazards for future renters. Also, check railings, door and window locks, and other possible safety issues. Keep in mind that it will be your responsibility as an Indianapolis property manager to make any necessary upgrades to ensure your renters have a safe place to live.
- The neighborhood and surrounding area. Take a good look around the rental property to get an idea of what living in that neighborhood would be like. Are there nearby schools or parks? Is there convenient access to shopping? Consider how these factors may impact rental rates and tenant satisfaction over time. Plus, be sure to ask the property owner about any potential noise issues or other concerns that may impact your rental property.
With the right information and a thorough inspection, you can be confident that your rental investment is smart.
One of the easiest ways to gather information about a potential rental property is to ask the experts at Real Property Management Faith. We work with investors like you to help locate, research, and manage quality rental properties in Indianapolis and the surrounding areas. Contact us today to learn more about our great services!
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