If you’re looking to tap into the hot Memphis rental market, you’ve come to the right place. Memphis was recently named as the #1 real estate market for investors and first-time home buyers.
To help you find the best investment properties for your portfolio, we’ve rounded up some of the best features to look for.
From the condition of the investment property to the location, there are a few things you should consider before you buy property. Read on for a go-to guide to investing in property in Memphis.
1. The Condition of the Property
The condition of the property is one of the most important factors to consider when buying an investment property. As a property owner, you want to make sure that you’re buying a home that brings in income. It’s important to know what kind of shape your potential purchase is in before committing.
There are a few different ways you can get an idea of how well-maintained a house is. Start with a property inspection. A professional inspector will come out and check for signs like mold, water damage, or cracks in walls.
They’ll also look at things like electrical outlets and plumbing fixtures for signs of wear or damage. The report from this inspection should include photos showing any issues found during their visit so there’s no question about what needs fixing before closing on the sale.
You may also want to do a survey and appraisal. These documents provide more detailed information about specific systems inside buildings, such as heating and cooling units along with their estimated lifespan.
2. The Investment Property Location
The location of your investment property is one of the most important factors to consider. The location will affect how much rent you can charge, as well as how quickly you can rent it out.
Get to know the local amenities like grocery stores and restaurants. Is there enough nearby food? Will your tenants be able to get what they need without having to drive?
Memphis is one of the fastest-growing cities for young professionals. Look for a property that is situated close to large office campuses and places of work. You want your property to be easily accessible for commuters.
While you can always spruce up your rental property and make improvements, you can’t change the location. You can knock down walls and re-paint, but you can’t transport a home. The location is arguably the most important factor in owning property to rent.
3. Local Attractions
Local attractions are a great way to attract tenants and can help you increase your property’s value. If your property attracts young families, make sure you’re located by great schools, parks, and other family-friendly attractions. Your property management team will help market your property based on attractions, the location, and what your property has to offer.
If you own an apartment building looking to attract young professionals, you’ll want to be by nightlife, things to do, and local attractions. Memphis has an incredible food, music, and culture scene. Take advantage of any proximity your property has to these great assets.
4. The Target Rental Market
The first thing you’ll want to consider is how much rent you can charge. The target rental market is the price range where your property will likely be competitive with other properties in the area. It’s important that your rental price falls within this range.
Consider who your target market is as well. If you own a single-family home across from a school, you’ll likely find interested families. Apartments by workplaces and nightlife may attract younger couples or roommates.
Research local rents around you. Look for comparable rental properties based on size, location, and appearance. Investing in a property management company will save you a ton of time, money, and stress when it comes to managing, leasing, and overseeing your rental.
5. Amenities and Appliances
Amenities and appliances are an important part of any home. They can be a selling point, an investment in the future, or both. Before you buy property, look at the renovations it needs, what amenities it already comes with, or what it is lacking.
Look at neighboring homes, buildings, and other rentals. You want to stay competitive, but you also don’t want to over-improve so much that you aren’t getting your money back on rent. If you own an apartment in a building with amenities, you’ll want to market those and charge a premium.
Amenities include dog runs, pools, fitness centers, mailrooms, and parking. The more you have to offer, the more rent you can charge for those conveniences. Renters will pay a premium for extra comforts.
If you’re renovating a rental, spend the money on new appliances, bathrooms, and kitchens. The appliances, new construction, and look will get you more rent.
Explore Property Management for Your Investment Properties Today
Owning investment properties is a great way to earn income and build your portfolio and your net worth. When you’re shopping for property, keep this list in mind for some of the top, must-have features. The location, the amenities, and the size of your property are the keys to getting the rental price you want.
If you’re ready to get the help of an experienced Memphis property management team, fill out the contact form here. We have expert property managers ready to help you lease, maintain, and market your properties.