Connect with us

Real Estate

Characteristics of a profitable rental property

The Real Estate Curacao

Avatar

Published

on

When investing in rental properties, you obviously want to buy the property that is most likely to offer the greatest profits. While there is no way to guarantee the profits you will receive from a real estate investment , there are some key factors to look for in a property that will significantly increase your chances of enjoying the profit you seek.

Location, Location, Location

Everyone knows that “location, location, location” is the number one rule in the real estate industry, and this is absolutely true when it comes to rental properties. Therefore, the first thing you need to consider is the neighborhood where the property is located. While you may not be able to afford a property in the city’s most popular neighborhood, there may be some great options available in an emerging neighborhood.

Consider the location in terms of available services, the schools that serve the neighborhood and the proximity of job opportunities. Crime rates and percentages of available places are also important considerations. After all, if you buy a property in a relatively safe place where vacancy rates are low between rents, you probably won’t have a hard time finding a tenant. Likewise, you will be able to command a higher rental price if your property is in a desirable area.

 Related Post:  Want to Buy a Property in Curacao? Contact The Real Estate Curacao!!

Bathroom and kitchen conditions

It’s no secret that bathrooms and kitchens are the two most important rooms for most buyers. Therefore, we want to make sure that the bathrooms and the kitchen are completely updated and comparable to other properties in the area. If you already own the property, you can make it more attractive to potential renters by updating kitchen appliances, changing countertops and painting furniture. In the bathroom, updated hardware, a new shower head and a new tile can do a lot to make the space more attractive. As a side bonus, the renovations of these spaces will also increase the overall value of your property if you decide to sell it later.

Cost of property taxes and insurance

The cost of property and insurance taxes can put a bigger dent in your profits than you can anticipate. Therefore, it is important to examine these costs before making a purchase. Keep in mind that the most popular cities and neighborhoods are typically affected by much higher property taxes than other cities and neighborhoods, so don’t make assumptions about these costs. Likewise, the cost of insurance can increase significantly depending on the location of the property and the types of natural disasters that can affect it. For example, adding additional coverage for things like floods, hurricanes and earthquakes can significantly increase overall costs.

Related Post:  Buy a Dream Property in Curacao with the Help of Real Estate Agency

Average rental prices for the area

Obviously, you can increase your profits by increasing the rent, but you cannot increase the cost beyond what the market will accept. Therefore, you need to research the average rental price for properties in the area so that you can get a clearer idea of ​​what you can expect to reasonably ask for your buying a property in Curacao. Subtract this from all your costs, including mortgages, property tax, insurance and maintenance costs, to get a clear idea of ​​what you can ask for your property in order to maximize profits.