Where Should Your Rental Property Be Located?
Finding a suitable location for your rental property is one of the most important steps toward becoming a landlord. You should consider two key factors when exploring the location for your rental: (1) which location is the best fit for you as the manager of the property? and (2) which location is the best fit for your potential tenants?
Let’s elaborate on this:
A location close to you as a landlord: As a diligent, hands-on landlord, you may have to visit your rental units often. It will be more convenient for you if the rental property is nearby. Consider the following examples of potential ideal rental properties that meet the following criteria:
On the way to and from work every day. This is ideal simply because you now have the option to stop by your rental before or after work. Having your rental close to work means you will have an easier trip, saving both fuel and time.
Close to another rental. If you like the neighborhood of your current rental, you may want to add a new rental in the same location. This way, you can kill two birds with one stone and visit both rentals, mow both lawns or shovel both porches in one trip.
Close to your home. In terms of convenience and ease of oversight, there is nothing better than a rental on the same street as your own house (or even on your property, such as an in-law apartment). However, this also makes it very convenient for tenants to visit you, in which case you will want to choose your renters carefully.
An attractive location for potential tenants: While you look for a location that will be convenient for you, also consider what is convenient for your tenants. Factors such as the distance to work, shopping, school, and entertainment can be deal breakers for some tenants.
Proximity to work or school: How far is the rental to major employers such as corporate headquarters, government buildings, factories, and hospitals? Is it close to local colleges and universities? Is it convenient to get on the highways? Is there public transportation nearby?
Walkability: A decent walking distance to public transportation, work, shopping, or entertainment can be a real plus and attract prospective tenants who may not have a car.
Privacy: While you endeavor to find a property that is accessible, you should also be careful not to choose a property with no privacy. For example, a property facing a major roadway and overly exposed to passing cars or traffic noise, or a property where the neighbors can easily look inside may not be desirable.
Environmental and social factors: You may also want to consider additional advantages, such as proximity to parks and lakes, nearby hills, community activities available, social events and sports, etc.
An ideal rental property location is one that’s close by and fits your potential tenants’ needs.