Investing in real estate can provide you with many benefits, but how do you determine whether a rental property is worth it?
As an investor, you'll need to consider a variety of things to ensure a property is profitable. Without doing so, you may end up losing money on a property and having a hard time finding tenants.
Fortunately, Pam T Property Management can help you master rental analysis and market forecasting, regardless of your experience.
Here are the most important factors to consider when investing in Savannah properties!
Age and Size
When analyzing a rental property, some of the most important factors to consider are its age and size.
A newer property is likely to have more value than an older property because it'll have fewer issues and won't need renovations. However, older properties can increase in value if they're maintained well.
Large properties also have more value because they provide tenants with more space. While your initial investment may be higher than it would be on a smaller property, you can charge tenants more.
Local Rental Rates
Another major factor to consider is how many other properties in the area are renting. Although typical rental rates have been declining in recent years, they've begun to increase this year.
Keep in mind that rental rates will vary depending on the city and neighborhood. If a property is located near downtown Savannah, it'll likely be more expensive due to the many nearby attractions.
Both apartments and houses also have varying rental rates due to size and land. While rates may trend in the same direction, one housing option may change in value quickly, depending on demand.
Because of this, if a property interests you, it's best to search for similar ones to determine whether it'll be a good investment. This will prevent you from becoming an accidental landlord.
Condition and Features
When scouting the rental market for good properties, you'll want to pay attention to each property's condition and features. If a property requires many improvements, it can still be profitable, but you'll need to invest more time in it. However, one that's in poor condition may be much more affordable, making it easier to maximize profits.
Some of the best rental properties have a variety of features that make them more accessible and luxurious. If a property has a garage and a pool, it'll be much easier to attract tenants and charge more money.
Improve Your Rental Analysis With Pam T Property Management
Now that you know about the main factors to consider when you value investment properties, it's time to work with a property manager. Whether you want to flip rental properties or keep them for a steady income, Pam T Property Management can provide all of the rental analysis services you need for success.
Not only can we help you determine whether a property may be a good investment, but we can also maintain it for you. This will allow you to focus on other investments and better build your portfolio.
Contact us to start working with real estate professionals in Savannah, GA today!