If we’re to talk about the most important real right now, rental properties for sale face the highest demand.
Table of Contents
The main reason why income opportunities for sale are so highly demanded is that they offer a sound and secure investment option. In addition, they provide a way to make short term and long term income along the way.
The idea behind purchasing income-producing properties is to start investing in real estate through a segment that is considered a necessity and not a luxury.
Traditional rental properties will never stop being in demand because potential tenants include those who can’t afford to purchase their own homes. With the current US population and immigration trends, those numbers are likely to grow.
Meanwhile, Airbnb investment properties are equally popular as a real estate strategy since both business travelers and tourists frequently choose their comfort over hotels. As domestic and international travel are quickly recovering after the onset of the COVID-19 pandemic, interest from guests is only expected to go up.
For investors, buying rental properties for sale is not a simple decision that can be made instantly. Sometimes, income properties turn into a source of negative cash flow rather than profit. Thus, it is vital that an investor does thorough research before deciding whether to go for a certain real estate property or not.
This leads us to the core of this article: What should an investor look for in rental properties for sale? Here we provide you with the five most important factors to consider when searching for investment properties for sale. Moreover, we show you how Mashvisor’s tools can help you in the analysis of each indicator.
Can You Get Rich Off Rental Properties?
Yes, you can get very rich with real estate properties, as proven by names like Donald Bren, Stephen Ross, Neil Bluhm, and Leonard Stern. However, there is no guarantee that it will happen unless you make strategic, data-based decisions.
It’s natural that before deciding in favor of buying properties for sale to rent out over other real estate investment strategies, beginner investors want to know what return to expect. After all, it makes sense to put your money where you can get the highest return.
Unfortunately, the question of how profitable rental properties does not have a specific answer. The truth is that it depends on a lot of different factors that go into your investment decision. Things like location, property type, property size, rental strategy, rental marketplace, pricing structure, and marketing efforts all go into determining profit.
But we know it is not the answer you were hoping for. As a savvy investor, you want to see the numbers and base your decisions on reliable data and research. To help you out, we will look at nationwide real estate market analysis conducted by Mashvisor to find out exactly how profitable rental properties for sale are at the moment.
Note: Mashvisor’s real estate data comes from dozens of trustworthy, publicly available sources and covers the entire US residential real estate market. In our analysis for this article, we’ve included hundreds of cities and towns with at least 100 active traditional and Airbnb rental listings.
How Profitable Are Rental Properties?
Based on Mashvisor’s traditional and Airbnb data analysis, the profitability of long term rental properties for sale ranges from 0.16% in Missoula, Montana to 6.54% in Camden, New Jersey. These numbers represent the cash on cash return, one of the most widely accepted metrics of return on investment in real estate.
The average cash on cash return across the US market amounts to 2.34%, while the median value equals 2.33%. Of course, these are just average city-level values, and individual income properties for sale can offer much better returns.
Regarding vacation rentals, the cash on cash return varies from 0.02% in Hillside Township, New Jersey to 8.49% in Brighton Heights, Pennsylvania. The average and median values are 3.47% and 3.38%, respectively. Similar to their long term counterparts, short term rental properties for sale can also range widely in return.
One conclusion we can draw here is that – overall – vacation rental homes offer higher profitability than traditional ones. In other words, the answer to “What rental properties are the most profitable?” is Airbnbs. It is because they also come with a higher risk relating to vacancy rate and regulatory restrictions.
Note: The Airbnb locations mentioned in this article may face various vacation rental laws and regulations. We recommend that you check out the websites of the state, county, and city authorities and/or consult with a local real estate expert before buying an Airbnb property for sale in any of these places.
Related: 100 Best Short Term Rental Markets in 2022
Now that you know what profitability you can expect from income properties for sale, we suggest that you consider the pros and cons of this strategy.
Benefits of Investing in Rental Properties
The advantages of buying and owning a cheap or expensive rental property for sale are numerous. Here are the main ones:
- High income potential: Depending on where your property is located, how big it is, and how well you manage it, you can earn rental income equivalent to dozens of thousands of dollars per month. With rental properties, you start making money right away and continue doing so month after month, as long as your house stays occupied.
- Real estate appreciation: That the value of real estate properties continues to increase over time is a fact. It means that with rentals, you make money in the long run, too. Importantly, the rate of real estate appreciation has historically exceeded the rate of inflation. So, investment properties act as a hedge against inflation.
- Easy diversification and growth: After you buy one property, you can save the rental income to invest in another one, and so on and so forth. The more rentals you own, the easier it gets to purchase a new house listed for sale. It provides a straightforward way to grow and diversify your investment portfolio.
- Low-risk investment: Real estate properties are tangible assets, making them less risky than other investments like stocks and cryptocurrencies. Moreover, there will always be demand from tenants who cannot afford a home. Even if Airbnb laws tighten in your market, you can switch to a traditional rental strategy.
- Passive income opportunity: Many think that investing in rental property requires a lot of active work, which is true if you opt to be a DIY landlord or Airbnb host. But if you hire a professional rental property management company, you can easily turn your monthly revenue into passive income.
Risks of Investing in Rental Properties
No investment method is perfect, and buying income properties for sale can bring some downsides. Following are the most significant risks to keep in mind and try to mitigate:
You lose money every day your property stays vacant. That’s why the vacancy rate is factored on the cost side of rental property analysis. To minimize the effect of this risk, you should analyze both the local market and the home for sale carefully. In addition, you should put effort into marketing your property well.
Bad tenants or Airbnb guests are one of the worst nightmares of real estate investors. They can damage your property, cause unreasonable wear and tear, and even not pay rent. Thus, you need to implement careful tenant screening procedures where you rent out on a long term or short term basis.
Prohibitive Legislative Environment
Rental laws are a bigger problem for vacation rental owners, but traditional rentals can also face restrictions. In other words, some markets are just more favorable to landlords and Airbnb hosts. Make sure to focus on them when searching for real estate properties for sale.
Related: The Best States for Landlords in 2022 and Cities With the Least Airbnb Legal Issues
Lack of Financial Liquidity
With a house, your money is tied until you sell. Financial illiquidity is a major drawback of real estate. To avoid the associated risk, it’s important to purchase properties for sale that promise a good return on investment and favorable long-term appreciation. Then you’ll have no reason to want to sell.
As physical assets, rental properties are prone to the effects of natural disasters. They can seriously damage or even completely destroy your house. It’s best to stay away from locations with a high risk of earthquakes, hurricanes, floods, and others.
5 Things to Look for in Rental Properties for Sale
As you can see above, investing in income properties can be a very profitable endeavor as long as you plan and execute your strategy correctly. The pros of rental properties outweigh the cons. The risks can be mitigated or altogether avoided if you conduct diligent rental market analysis and investment property research.
Nevertheless, as a beginner real estate investor, you might still be unsure about how to distinguish between good and bad properties for sale. In the next section of this article, we will focus on the five factors that investors cannot ignore when analyzing an income property for sale.
1. Real Estate Market
Let’s be straightforward about this point. Location is everything in real estate investing, as they say. No one will be interested in renting an income property that is located in a bad area that is far from life, crime-ridden, or without proper services. Investors who wish to make money in real estate must invest in a good location to stand any chance of making a profit.
But what constitutes an ideal real estate market for investing in properties for sale? Let’s look at the main indicators at the city and neighborhood level:
The Best City
When you talk about the location, the first thing to consider is the city. Depending on your rental strategy, there are different signs to look out for.
If you plan to buy traditional properties for sale, the best places have a growing economy, a strong labor market, and above-average wages. Ideally, the local economy is a mix of various industries, so it stays afloat even in the face of a downturn in some sectors. It means that tenants will have the means to pay rent on time and take care of your properties.
Moreover, the population growth should be positive, whether due to high birth rates or immigration. It’s best if the rate of renting is above the homeownership rate. The combined effect of these two factors is high rental demand in the long term, which will help minimize vacancies.
Alternatively, if you opt for investing in vacation rental properties for sale, you need to look for cities that bring a lot of short-term visitors, like Florida and California. You could either aim for major business hubs or popular tourist destinations.
With Airbnb properties for sale, it’s imperative to research the local short term rental laws and regulations. Many top Airbnb locations have imposed rules that have made non-owner-occupied vacation rentals unfeasible. Instead, go for markets where Airbnbs are not only legal now but where there has been no talk of introducing legislation in the near future.
Related: Is Airbnb a Good Investment Considering All of the Regulations?
Even armed with this information, it’s hard for a new investor to locate the best cities for purchasing income properties for sale without doing extensive research. So here’s a list of the top markets for both types of rental properties for sale by owner or online:
Best Cities for Traditional Rental Properties for Sale
According to the Mashvisor data, the five markets below offer the highest return on investment for long term rentals for sale:
- Camden, New Jersey
- Traditional Cash on Cash Return: 6.54%
- Traditional Rental Income: $1,314
- Median Property Price: $185,611
- Average Property Price per Square Foot: $138
- Price to Rent Ratio: 12
- Average Days on Market: 67
- Walk Score: 62
- Miami Gardens, Florida
- Traditional Cash on Cash Return: 4.67%
- Traditional Rental Income: $1,955
- Median Property Price: $307,519
- Average Property Price per Square Foot: $253
- Price to Rent Ratio: 13
- Average Days on Market: 83
- Walk Score: 30
Learn more about investing in Florida rental properties for sale.
- Springfield, Massachusetts
- Traditional Cash on Cash Return: 4.62%
- Traditional Rental Income: $1,433
- Median Property Price: $207,408
- Average Property Price per Square Foot: $165
- Price to Rent Ratio: 12
- Average Days on Market: 150
- Walk Score: 55
- Warren, Michigan
- Traditional Cash on Cash Return: 4.30%
- Traditional Rental Income: $1,262
- Median Property Price: $195,778
- Average Property Price per Square Foot: $153
- Price to Rent Ratio: 13
- Average Days on Market: 47
- Walk Score: 39
- Glen Burnie, Maryland
- Traditional Cash on Cash Return: 4.26%
- Traditional Rental Income: $2,183
- Median Property Price: $381,897
- Average Property Price per Square Foot: $239
- Price to Rent Ratio: 15
- Average Days on Market: 73
- Walk Score: 84
Learn more about investing in Maryland rental properties for sale.
Top Locations for Airbnb Investment Properties for Sale
Based on Mashvisor’s short term rental data, the following are the most profitable places for investing in vacation homes near me or far this year:
- Brighton Heights, Pennsylvania
- Airbnb Cash on Cash Return: 8.49%
- Airbnb Rental Income: $3,183
- Airbnb Daily Rate: $150
- Airbnb Occupancy Rate: 57%
- Median Property Price: $251,880
- Average Property Price per Square Foot: NA
- Average Days on Market: 22
- Walk Score: 62
- Delhi Township, Ohio
- Airbnb Cash on Cash Return: 8.09%
- Airbnb Rental Income: $3,142
- Airbnb Daily Rate: $115
- Airbnb Occupancy Rate: 55%
- Median Property Price: $235,156
- Average Property Price per Square Foot: $148
- Average Days on Market: 27
- Walk Score: 57
- Rio Grande, New Jersey
- Airbnb Cash on Cash Return: 8.00%
- Airbnb Rental Income: $3,965
- Airbnb Daily Rate: $301
- Airbnb Occupancy Rate: 52%
- Median Property Price: $318,900
- Average Property Price per Square Foot: $245
- Average Days on Market: 52
- Walk Score: 52
- White Settlement, Texas
- Airbnb Cash on Cash Return: 7.77%
- Airbnb Rental Income: $3,355
- Airbnb Daily Rate: $149
- Airbnb Occupancy Rate: 58%
- Median Property Price: $266,845
- Average Property Price per Square Foot: $179
- Average Days on Market: NA
- Walk Score: 42
- Warr Acres, Oklahoma
- Airbnb Cash on Cash Return: 7.68%
- Airbnb Rental Income: $1,751
- Airbnb Daily Rate: $111
- Airbnb Occupancy Rate: 55%
- Median Property Price: $123,574
- Average Property Price per Square Foot: $90
- Average Days on Market: 36
- Walk Score: 56
The Right Neighborhood
Regarding single family or multi family investment properties for sale, the neighborhood is just as important as the city. Indeed, it’s better to invest in a good area in a bad city than in a bad area in a good city. If you go for a bad neighborhood, you actually risk ending up with a negative cash flow property. But what makes for the right neighborhood?
If you want to buy traditional rental properties for sale, look for areas where residents tend to rent rather than own. Search for places that are dominated by the most demanded property type in the local market, whether single family homes, townhouses, condos, or multi family properties. It is largely determined by your tenant target – individuals or families.
Keep in mind that small families often comprise the best renters you can hope for. To attract them, invest in neighborhoods with good public schools and good transportation options. The presence of cheap shopping and dining opportunities will also increase your occupancy rate and rental rate.
In terms of Airbnb properties for sale, your area should be close to business centers or tourist attractions, depending on your target guests. Access to public transportation is chief as Airbnb guests frequently leave their cars behind. Safety is also key as no one will want to risk being robbed during their work or leisure trip.
At the same time, don’t forget the average profitability of a neighborhood. Performing neighborhood analysis in real estate investing can be challenging if you don’t have access to the right tools. So, you should check out the Mashvisor platform, which allows you to identify the best neighborhoods in any US market and analyze their investment potential.
How to Find Profitable Neighborhoods
Once you’ve focused your search on a few best cities for investing in traditional or Airbnb rental properties for sale, you can use the Mashvisor real estate heatmap. This color-coded, interactive tool will highlight the areas with the cheapest home values, the best rental incomes, and the highest return on investment.
Next, you can zoom in on an area that caught your eye and access the neighborhood analysis section. You can confirm if this market is suitable for buying long term or short term rentals for sale. The neighborhood analysis includes the following measures:
- Mashmeter (a dynamic market opportunity score)
- Median property price
- Average property price per square foot
- Traditional and Airbnb cash on cash return
- Traditional and Airbnb rental income
- Number of MLS listings
- Number of traditional and Airbnb listings
- Airbnb occupancy rate
- Optimal rental strategy
- Walk Score
- Transit Score
- Bike Score
- Real estate comps
- Optimal property type: Single family home, townhouse, condo, apartment, or multi family property
- Optimal number of bedrooms
With the help of Mashvisor’s real estate tools, you can find a good neighborhood to invest in and look for properties for sale there. Learning how to find cheap properties in an entire city can be confusing and tiring. Mashvisor provides its clients with the ability to search cities and neighborhoods through the click of a button.
The search tool also gives them the ability to filter their search results based on a set of different criteria. It is a very useful tool if a real estate investor wants to take control of things and understand all factors involved. Mashvisor’s search tool is innovative, time-saving, and effortless for all its users.
2. Price of the Property
Before purchasing any of the available rental properties for sale in your selected market, it is important to check the average market price of similar listings in the area. Many real estate investors rush to purchase investment properties below the average market price, thinking they’ve found a bargain.
However, later on, they figured out that the price was lower than the rest for a reason. For example, the income property for sale could require intensive repairs, or it could be located in an unfavorable location. A lower price of a property is not always a positive thing. That’s why doing your research is important.
The same applies to properties for sale that are overpriced. Yes, they can be portrayed as more luxurious or fancy, but as an investor, it is your job to calculate if the higher price is worth it.
Some real estate investors choose to purchase averagely priced income properties and renovate them to become luxury single family or multi family rentals. It can be cheaper than buying overpriced rental properties for sale.
Most importantly, the purchase price of the investment factors in iall profitability measures in real estate. Whether you look at the cash flow, cash on cash return, or cap rate, the house value, down payment, and mortgage payments will be present in one way or another.
If you’re a novice investor, you may not know how to find the fair market value of income properties for sale. Let’s look at the right approach step by step:
How to Assess the Fair Market Value
As outlined above, buying a property for sale at a good price is crucial for minimizing startup costs, maximizing occupancy, and optimizing the return on investment. To make sure that you pay a fair price, you need to consider comparable properties to the one you’re thinking of located in the same market. They are known as real estate comps.
Conducting comparative market analysis is the traditional way how to find comps and requires the following steps:
- Making a list of the most important features and characteristics of the property for sale you are considering buying. Make sure to take note of things like property size, the number of bedrooms and bathrooms, property age, overall state, and interior and exterior amenities.
- Searching for 3-5 properties in the local market that have been sold over the last three months and that share the same main characteristics as your listing. Focus on an area within a mile from your house for sale.
- Evaluating how similar these properties are to your choice available for sale. List all significant differences.
- Establishing a range of fair market values between the lowest and the highest sales prices of the real estate comps. The right price of your home for sale is within this range.
- Refining the fair market value of your income property for sale based on the similarities and differences from the comparables. Adjust for extra or missing features to determine how much it makes sense to pay.
Knowing how to locate real estate comparables and how to find out their sales prices and exact specifications is key to the success of the fair market value approach when buying investment properties for sale. So where can you find this information?
How to Find Real Estate Comps
Traditionally investors had to look through old real estate listings for sale in newspapers, ask around, or resort to their network to identify real estate comps and other data. Nowadays, they can rely on accessible software tools to provide them with all the information they need.
One of the best tools for finding real estate comps in the US market is Mashvisor. With a standard subscription, you can access recently sold properties in any market, including:
- Sales price
- Price per square foot
- Sale date
- Number of bedrooms
- Number of bathrooms
- Square footage
You can use the available comps from the MLS database to evaluate the price that makes sense for your property for sale. Then, you can include it in your rental properties analysis to check what profitability corresponds to it. It should be the basis of any decisions you make with regards to which rentals for sale to buy and which ones not to.
Keep one thing in mind. We are currently experiencing one of the hottest real estate markets in decades. As demand is strong and supply is low, home values are changing rapidly. Sellers are receiving multiple offers, giving them numerous options. So, be ready to pay a bit higher than the fair market price if you really like a property for sale and the numbers add up.
3. Rental Income
When buying one of the many available rental properties for sale, a real estate investor needs to look at one very important success factor. It is the rental income that they will be able to generate through tenants. Understanding the average rental rate in the area where you are purchasing your investment property for sale is extremely important.
What is the point of buying a rental property if it will be destined to fail and not generate enough money to cover all expenses and bring you a positive cash flow?
As a basic guiding principle, rental properties’ income should be enough to cover operating expenses. They include mortgage payments, taxes, insurance, maintenance, management, marketing, vacancy, and any other costs that will be incurred by the investor.
Some might argue that breaking even on your rental property is enough. It might be true in some cases, but in today’s market, that is considered a failure. Successful investors demand positive cash flow properties for sale.
Related: How Much Rental Income Should You be Making?
So, how do you find out how much you can rent properties for sale for? There are a couple of primary methods used to answer this question:
How to Use the 1% Rule in Real Estate
Traditionally real estate investors relied on many different rules of thumb, and one of them is the 1% rule.
What is the 1% rule?
According to the 1% rule in real estate, a property should generate at least 1% of its purchase price in monthly rental income. It means that if you buy a house for sale for $350,000, you should charge a monthly rental rate of $3,500 or more.
The above formula mostly refers to long term rental properties. When analyzing the revenue potential of vacation rentals for sale, an investor should aim higher. As you charge per day, you should be able to generate more income.
Using the 1% rule is straightforward but rather simplistic and might even be misleading. After all, there are so many market and property-specific factors that affect rental income. So, investors need to aspire to use more precise methods for estimating what rate to charge for investment properties for sale.
How to Benefit from the Mashvisor Rental Property Calculator
An even easier and more accurate way to evaluate what rental income real estate properties for sale can bring is to use Mashvisor’s rental income calculator.
Instead of relying on a simplistic formula like the 1% rule, this tool looks at the actual performance of active rental comps. Then, it provides a rent estimate for the income property for sale you analyze, whether a single family or a multi family home.
Importantly for beginner investors, the Mashvisor platform provides you with the opportunity to search for cheap and pricey traditional and vacation rental properties for sale. They comprise MLS listings, as well as some foreclosed properties and other off market homes across the US.
You can filter your search by location, price, financing method, expected rental income, preferred return on investment, and other criteria.
The Mashvisor rental property calculator does not limit the data to the rental income an investment for sale can generate. It also offers other crucial metrics when evaluating the potential of both turnkey and distressed properties, including:
- Mortgage details
- Startup costs
- Recurring monthly expenses
- Cash flow
- Cash on cash return
- Cap rate
- Occupancy rate
All the available numbers are presented for both long term and short term rental properties for sale.
Before making a decision on which of the rental properties for sale to go for, a real estate investor must thoroughly examine them. The condition of the income properties available for sale gives a clear indication of future repair expenses. If the property is damaged or has a faulty structure, the repair costs will be significantly high.
Investing in extremely damaged properties is a bad idea if profit is the motivational factor for your purchase. Finding a rental property for sale in an acceptable condition should be your minimum standard. Even better, you should consider turnkey properties to minimize your repair expenses.
However, as a savvy investor, you should realize that fixes and repairs are not the only costs associated with purchasing investment properties for sale. There are a number of one-time startup costs and recurring monthly expenses that you need to factor into your rental properties analysis before buying. Let’s look at them.
Related: The 6 Hidden Costs of Owning Rental Property
One-Time Startup Costs
When investing in rental properties for sale, the biggest expense is the actual price. If you pay in cash, this is the price of the home. If you use a conventional mortgage, the down payment will amount to a minimum of 20% of the sales price. You can reduce the down payment amount if you qualify for other financing options.
When you take out a mortgage to purchase a rental property for sale, you need to pay an appraisal fee, usually around $300-$400. On the other hand, closing costs add up to 3%-6% of the loan amount.
With or without a mortgage, it’s highly recommended that you get a home inspection. That’s how to find the exact state of the property for sale, especially if it’s not turnkey. It costs an average of $500.
The good news for investors is that the buyer does not need to worry about the agents’ commissions as they are covered by the seller in the US housing market.
Another major set of expenses is related to getting the properties for sale into an inhabitable state. If you invest in distressed properties for sale, the repairs can add up to a hefty sum. If you buy a turnkey property, you don’t need to pay anything. For an average house for sale, be prepared to pay $3,000-$5,000 in repairs.
Last but not least, if you want to start an Airbnb business, you must factor in the cost of furnishing the house for sale. It can cost anything between $2,000 and $20,000, depending on the quality of the furniture and the experience you want to create. If you rent out traditionally, you don’t need to worry about furnishing the properties for sale.
Your expenses as an investor do not end with buying real estate properties for sale and getting them ready for renting out. Indeed, there are numerous costs that you incur on a monthly or yearly basis. You need to estimate them carefully and accurately as they are a major determinant of your cash flow and return on investment.
Owning rental properties results in paying annual property taxes and home insurance. Property tax rates vary significantly between states and cities, while insurance averages around $1,200 per year. Moreover, you need to pay income tax on your rental income at the same rate as your regular income.
Related: 10 States With Low Property Tax
Another standard recurring cost is property maintenance. How much you will need to spend on it depends on your rental strategy and how carefully you screen your tenants. But you can estimate an average of 1% of the property price per year.
If you buy a condo for sale or other properties with an HOA, you need to pay monthly fees, which can be between $100 and $1,000 per month. In case you opt to hire a professional property manager, you can expect to pay them 8%-10% of the monthly rental revenue.
When investing in vacation properties for sale, you need to cover utilities, basic supplies, and cleaning fees. They can add up to a few hundred dollars a month.
Last but not least, you should consider standard business operating expenses like maintaining a home office, transportation, marketing, and advertising.
What’s great, though, is that you can write off many of the expenses when filing your tax return. It is important in order to minimize your costs and maximize your rate of return.
Quick Estimation of Rental Properties Expenses
Before buying single family or multi family rental properties for sale, you need to understand and appreciate the importance of accurately calculating and factoring in all startup and operating costs. Together with your rental rate and occupancy rate, they are major determinants of your profitability.
While estimating all expenses and entering them into your income properties analysis can be time-consuming, you can use the Mashvisor calculator discussed above. It will give you a detailed breakdown of all one-time and recurring costs based on local market averages. You can customize expenses or add new ones to recreate your specific situation as an investor.
Mashvisor will help you prepare a clear-cut financial plan when buying rental properties for sale. Having accurate data on the rental income minus the expenses will help you know the expected profit or loss from any income property for sale right away.
5. Services and Amenities
Yet another thing you need to consider when investing in income properties for sale is the amenities and services that the market and the house offer. The extras that come with your investment can make all the difference between owning a rental that’s occupied most of the time and having a vacant property.
Your strategy in this regard should differ if you invest in long term or vacation rental properties for sale. Let’s look at the most sought-after amenities for each rental type.
Long-Term Rental Amenities
The additional features that make the most sense for traditional rental properties for sale depend on the tenants you want to attract.
If you target young professionals, focus on neighborhoods close to the commercial part of town. Make sure the area has an abundance of tech stores and services, dry cleans, and quick but healthy dining options. Busy professionals will also appreciate easy access to sports facilities like a running track, a swimming pool, or a gym.
Alternatively, if renting out to families with children, you’ll need to focus on other amenities. For example, a property for sale that is located in a good school district is a positive quality and can be a factor in a better rental income. Extra security will definitely be considered a bonus. A gated community, for instance, will be a differentiating factor when compared to competitors.
If, on the other hand, you plan to cater to the needs of retirees, they will appreciate living in a senior community. Moreover, they will expect home features that make their movement and day-to-day activities easier and safer.
So, in order to maximize your occupancy rate, you need to consider your tenant target group and their unique needs. Eliminating vacancy is a surefire way to push up your rental income, cash flow, and rate of return.
Investing in Airbnb properties for sale is very different from investing in traditional rentals. The similarity, though, is that you need to analyze your target guests and their requirements.
When planning to host business travelers, focus on neighborhood and property amenities that will make their stay more efficient. Buy a property in a location that has places appropriate for business meetings, like quiet restaurants and cafes. Make sure the area also provides good transportation options to major business hubs in the city.
In terms of the income property, you need to provide excellent Wi-Fi, as well as a small but comfortable home office. Provide good coffee and tea for maximum Airbnb occupancy rate.
Meanwhile, vacationing individuals and families expect other amenities when booking your short term rental over neighborhood properties. They would like easy access to tourist attractions and good local cuisine. In the vacation home, they will expect to find everything to make their stay enjoyable and relaxing. For example, supply basic cooking utensils in case they prefer to cook.
Since the outbreak of the pandemic, both Airbnb and Vrbo report an increased interest in outdoor spaces and activities. To benefit from this recent short term rental market trend, you can offer outdoor amenities such as a children’s playground, a grill, and a comfortable sitting and dining area.
Additionally, you should keep in mind that Airbnb guests focus more on the experience than the home. To boost your occupancy, you can offer additional services like homemade local meals, city tours, introduction to local artisans, and others.
How to Choose the Optimal Amenities and Services
Learning how to find what area and property features will meet the most success with your tenants or guests is hard. An efficient way to find this out is to analyze active rental properties in the local market.
You can check out listings and what amenities they come with. On the Airbnb platform, you can easily see what generates the most 5-star reviews and highest rankings. You can also talk to experienced local investors. You might be surprised how willing successful real estate investors are to share their experience with beginners.
It is easy to understand the demand for rental properties for sale in today’s market. Real estate represents one of the most secure and stable investments in the business world today. Nevertheless, there is a difference between real estate investors who rush into income property investments and those with a certain standard that makes them successful.
All successful rental property owners must put some effort into creating a list of crucial features to look for before purchasing one of the available income properties for sale. In this article, we’ve provided you with the five most important factors to consider when buying an investment property: location, price, rental income, expenses, and amenities.
Conducting the required rental property analysis is challenging, and that’s why investors need to rely on trustworthy online tools that help them speed up the process. Otherwise, they risk other investors snatching the best opportunities before them.
With the Mashvisor real estate investment platform, you can search for profitable traditional and vacation rental properties for sale, investigate the investment potential of neighborhoods, and analyze the listings in detail.
To start your real estate investing journey on the right foot, sign up for a 7-day free trial of Mashvisor now.