Investing in the real estate market can be part of a reliable investment portfolio. The preferred approach for new investors is to buy a property to rent.
Becoming a landlord is an appealing venture that can drive a secondary source of income. The rewards for landlords are numerous, including the safety to use your passive income for other projects or even retirement financing.
Landlords can also benefit from tax breaks that make mortgage management more accessible.
Additionally, real estate is a physical asset that is less likely to fluctuate than more volatile assets. While housing prices can vary greatly, as a landlord, your rent will reflect on the property value and the cost of living.
Landlords, however, need to be smart about their property management.
Tenant selection and up-to-date maintenance are critical to your wealth strategy. Yet, you also need to identify the sweet spot of real estate that keeps your rental profitable for a long time.
A lively and integrated community
Your tenants are not looking for a 2-bedroom apartment or a maisonette with a garden. They are looking for a realistic and practical answer to their day-to-day needs.
It is something that experts in real estate development such as Paul Ognibene from Urban Spaces have recognized. They set the focus on building happy areas for the community. As a result, they understand that today’s tenants are looking for state-of-the-art buildings that are fully integrated into the work and leisure environments.
Your rental is more than a place for your tenants to live. Your rental needs to belong within a community that can bring a localized answer to employment needs, leisure, and commercial interests. Lodging, office spaces, and retail stores cohabit in modern communities, and that’s precisely the surroundings your tenants need.
Unique facilities
What do your tenants expect from the rental? People are willing to pay more for desirable amenities. The answer varies depending on tenants, age groups, relationship status, and lifestyle preferences.
But, one thing a landlord needs to know is that today’s tenants are savvy. People compare housing options and communities to find the best solution for their needs. As such, tenants are aware of popular amenities in housing communities and apartment complexes.
For instance, 90% of new apartment communities have a gym that is fully available to the residents.
Tenants are also concerned about laundry facilities, either directly in the apartment or within the building. Other appealing amenities and services in modern properties include a roof-top communal area, often fitted with bbq or mini-bar facilities, and breakfast service for commuters.
Location, location, location
Location remains a key factor of choice. It goes without saying that remote housings are less desirable to long-term tenants.
However, the pandemic crisis has increased the proportion of home-based workers. As such, the choice of location isn’t defined by the proximity to the workplace anymore. Instead, tenants prefer quieter locations that are close to schools or closer to nature. On the other hand, aging tenants will prefer to remain close to their friends and relatives and within a reasonable distance to healthcare centers and stores.
The mystical formula for a profitable rental is constantly evolving and growing to capture the current trends on the market. As such, the post-pandemic rental needs to be integrated within a friendly community of services, yet it doesn’t need to be in the city center anymore.
(Disclaimer: This content is a partnered post. This material is provided as news and general information. It should not be construed as an endorsement of any investment service. The opinions expressed are the personal views and experience of the author, and no recommendation is made.)
