“Is There Money In Renting Out Houses?” written by Mike Marko
Is there money in renting out houses? That’s something a lot of people want to know right now.
When I’m asked “Is there money in renting out houses”, I answer that it depends.
Put the right property and location together and you’ll see massive returns from the investment. On the other hand, some rental properties barely see profits for years.
Fortunately, there are certain ways you can boost your chances of profiting from a rental property investment. Most of it involves choosing the right house to put up for rent.
That’s why it’s important to do thorough evaluation and research before you purchase a property. This is so that you’ll have an idea if renting it out will be profitable for you or not.
That’s what I’ll help you with today. Let’s go over indicators that can help you pick the right property to purchase and set up as a rental for others.
That way, you will get a positive answer to the question “Is there money in renting out houses”.
How to Ensure Profits from Rental Investments
As I said, the key to getting a “Yes” to the question “Is there money in renting out houses” is finding the right property to buy and put up for rent.
To do that, you can follow certain indicators. These include things like a healthy neighborhood and an abundance of modern amenities in the property’s area.
Some indicators may be easier to see but make it a point to research the rest. Don’t skip on your due diligence no matter what happens.
Do this right and you’ll get the perfect property to put up for rental. That way, you won’t end up being one of the landlords struggling to find tenants and wondering, “Is there money in renting out houses?”
1) The Neighborhood Is Healthy
The residential neighborhood need not be perfect, with centralized facilities and large impressive houses on every corner. But it does have to be in a sensibly healthy neighborhood.
What does it mean by a healthy neighborhood? It means that it’s not dealing with a crisis or not incapacitated. A healthy neighborhood has a high level of occupancy.
This would also mean that lawns aren’t marked with “for rent” signs and there aren’t any houses with barricaded windows.
A healthy neighborhood has high occupancy rates and it contains desirable rented houses that are occupied for years.
It suggests that renting out houses is profitable in that area. It gives a hint for you to be able to answer the question “Is there money in renting out houses”.
If most folks living there are homeowners, it clearly shows a happy and contented neighborhood where residents want to raise their families.
A healthy neighborhood is clean and tidy in appearance. It should look like residents are taking care of it by heart.
Finally, there shouldn’t be trash and garbage littered about the area. That could turn off not only potential tenants but also other investors hoping to set up rental properties in the area.
2) Has Plenty of Facilities
Look at the surroundings. Are there amenities available like nearby parks, and sidewalks? Are there plenty of street lamps along the roads?
These amenities show you how you can market your own rental property in the area. They tell you what words to speak about in your vacancy advertisements.
How far will residents walk for public transport? Is the area near stores, markets, gyms, hospitals?
These are the things that make people very likely to apply for a tenancy. The more facilities and amenities around an area, the better the chance for properties to be turned into rental houses.
When this is the case, the answer to “Is there money in renting out houses” is obviously affirmative.
3) Has a Carport or Garage
If the property has a carport or garage, you can charge for a higher rent. This can make the property more profitable.
This shows another way you can get a positive answer to the question of “Is there money in renting out houses”.
Houses with a garage are a priority for most potential tenants. Most of them choose a property with a carport over one without.
If a rental property has a carport but no garage, it’s still considered a good sign since you can put “off-street parking” in an advertisement. That is another good feature for potential tenants.
4) Surrounded by Employment Opportunities
When people ask me “Is there money in renting out houses”, I tell them there can be… if your rental properties are in an up-and-coming area.
By this I mean the areas seeing sustained business development. That usually means more jobs for people in the locale, which is a factor in your rental property’s success.
Many people want to live in areas where there are more employment opportunities. After all, they can’t pay their rent if they don’t have a job or can’t find work.
If the spot where a property is located has more employment opportunities, there are usually more people interested in renting in it.
So is there money in renting out houses in areas with little business development? Not usually, which is why I advise looking for busier places if you’re still just looking to buy.
Look for places where a company is about to establish a new branch or office. If one big company or business enterprise is branching out in the area, it is a good idea to purchase a property to rent out there.
Chances are, some of their employees will be looking for rentals in the same area. That’s how to get a positive answer to the query “Is there money in renting out houses”.
5) In Good Structural Condition
At this point, maybe you are able to answer the question “Is there money in renting out houses” yourself. But there’s a lot more to consider.
For example, if there are renovations and repair that can drain you financially, you can lose money on your investment.
That is the reason you should avoid investing in a rental property that you still haven’t seen. Furthermore, you need to always do a thorough inspection to see the extent of repair requirements that should be completed.
Aside from that, you should look at the roofline because it can say a lot about the current standing of the house, like if the house looks weak or unsafe.
You can also get a hint about the materials that have been used by seeing the roofline, if it’s part of the original structure.
Additionally, if the eaves are not draining properly or running slowly, the water will overflow and can fall inside the house or it can seep through cracks in your walls.
But if the requirements for repair are within reason, a property can still turn out to be a profitable investment.
So, in sum, is there money in renting out houses that are not in mint condition? There can be, provided the cost of making them habitable isn’t too high.
6) In an Area with a Good Reputation
Certain cities and neighborhoods are able to develop reputations as being more visually attractive and desirable than other properties.
These reputations can involve being trendy, cool, and promising.
If you hear people saying things like this about a certain neighborhood, lots of people likely desire to live in that neighborhood.
This kind of neighborhood is a bit higher in price, but there’s a greater chance that you’ll find more profit just because of the area’s reputation.
Having said that, this shows you another way you can get another positive response to your query “Is there money in renting out houses”.
You likely will not have to worry about your rental property going vacant for any period in an area like this. If a tenant leaves, there’ll always be a line of others wanting to move in.
7) In an Area with a Low Crime Rate
A low crime rate will attract great tenants. Furthermore, the better the tenant, the more useful and profitable your property can be.
That’s why landlords with rental properties in low-crime locations don’t ask “Is there money in renting out houses”. They don’t need to, because they’re seeing the money themselves.
Areas with low crime rates are where potential tenants will feel safe to live with their families. That will lead to decreased vacancy rates for landlords who are renting out houses.
Moreover, low crime spots give you the feeling of security. There’s a low chance of break-ins in your property while it’s vacant in between tenants.
Ultimately, low crime means a better neighborhood. That means there’s a big chance that property values can be maintained over time.
Final Thoughts on the Question “Is There Money in Renting out Houses?”
So is there money in renting out houses? As you’ve seen from this article, there can be, if you’re renting out the right house.
That means that people asking “Is there money in renting out houses” should take care to choose a profitable rental property before venturing into this business. To help with that, I gave you several indicators that a property can be profitable.
Among the 7 signs of profitable rental property is a healthy neighborhood. It often translates to high occupancy rates for rental properties.
Another sign that helps you determine if there is money in renting out a house is the number of amenities. More amenities means more chances of getting money in renting out houses.
Furthermore, if the place has more job opportunities, there is a strong possibility that more people will want to rent and stay longer in rental properties around it.
So the next time you hear yourself asking, “Is there money in renting out houses”, you can rest assured there is. But only if you do your due diligence in picking the right houses to rent out as a business.
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