[:en]Are you thinking about purchasing a home for the purpose of using it for a rental 
property? Buying a home to rent out is a great investment but there are some things you should consider before you contact your real estate agent.
Location – When purchasing a home, price is definitely a factor, but you also need to consider the neighborhood. When purchasing a home to rent out, you need to think about the distance to schools and major freeways as well as neighborhood amenities. These factors will determine how easy it is for you to rent out the property. You need to also consider the crime rate in the neighborhood. Let’s face it; no one wants to live in an area with a high crime rate.
Rental Income – It is important to know what the going rate for rent is in the area in which you plan to purchase. Look in the local newspaper or online rental listings for similar homes with the same number of bedrooms and bathrooms. It is crucial that you are able to profit from the rental home.
Consider Other Fees – Owning a rental home is more than just collecting rent every month. You need to think about certain fees that come along with owning a rental property such as HOA fees, insurance, property taxes, repair costs and more.
Mortgage Amount – Since the point of owning a rental property is to make a profit each month, you need to make sure that your mortgage payment is as low as possible. There are many things that determine your payment such as your credit score and the amount of your down payment.
Have a Plan – Never, ever buy an investment property without a plan in place. Will you be your own landlord or will you hire a property management company to handle things for you? What will you do in the event of an emergency? You also need to consider having a good amount of extra money in savings in the event of an emergency or in the event that you can’t find a tenant for your property.
Know the Risks – You need to know all of the risks of owning rental properties. Some may include your property sitting empty between renters, legal expenses in the event of an eviction and repair costs that come with a bad tenant causing damage to your property. Properly screening potential tenants is incredibly important for the success of your rental property.
Owning investment properties is a great way to earn extra money every month but you must know what comes along with it. If you carefully keep up with collecting rent and maintenance requirements, owning a rental property could be a great long term investment for you. By taking all of these tips into consideration, the decision to purchase a rental property should be an easier one.[:]
