Buying homes to rent to other adults can be a great investment. It allows you to start building your assets while having others help out greatly with your mortgage. But when you're shopping for rental properties, the features you'll look for can be very different from the ones you'd normally pick. Here are some things to look for when choosing rental properties to purchase.
You might want to stick with properties with a greater number of bedrooms. This would give you the option of splitting the home up into several rental properties. You could rent the rooms out individually or use each level as a separate rental space. Properties with a higher number of bedrooms can pull a much higher rental dollar amount, since they can accommodate a larger number of adults. Just be sure to check your local regulations; you will likely encounter a cap on the number of unrelated adults that can live in a single dwelling space.
Higher Ratio of Common Space
If you choose to split up your property into multiple rentals, another important thing to look for is spaces with a large common area. For instance, if it's a home that has a very large kitchen and living room, this will help you to give a larger feel to each resident. Since every tenant has access to this common space, it provides more value to a larger number of people. If it's an apartment building, having large conference rooms or common quarters in the building is something to consider.
At the same time, community features such as gyms, swimming pools, and hot tubs can have a similar effect. You get to market these features to several different people that will be using the rental property. It can drive up the rent for each person, while not costing you a whole lot extra on the whole.
It's also important to consider the parking options near your rental home. You might need a larger number of available parking spaces for a home that will be split among many adults. You might want to invest in backyard parking or an expanded garage and driveway.
These are only a few of the factors that should be considered when you're picking the perfect rental property. The best thing to do is to work with an expert real estate agent to suss out different options in your community; someone with rental experience is ideal, since they will know what to look for in properties.