Are you considering sinking your money into a short-term rental investment? If so, that would be a good idea. With the rental industry growing significantly due to increases in population and housing demands, now would be a great time to get yourself a short-term investment property for rental.
Owning an investment rental property can come with quite a few advantages. To start with, the money generated from such an investment would create extra affluence that can be used to take your family on holiday or put aside for your future retirement plan. In addition to this, buying a low-cost rental property in a cheaper area also has the ability to deliver income that can help you offset any outstanding mortgages and loans. However, to enjoy all of these advantages, you’ll need to do your homework first.
As with most things in life, it’s important to make sure that the investment property you buy is an informed decision. Failure to do so will likely result in you losing thousands of dollars. As such, if you’d like to avoid this, doing your due diligence is critical.
Below, we are going to help you with this by outlining some of the things that you’ll need to know, as well as some of the questions that you’ll need to ask yourself and consider when buying a short-term rental property.
What do I need to know about buying a short-term rental property
So let’s get started…
1. Consider the Properties History before the Purchase
Firstly, if you’d like to make a good decision for your future, it’s important to take a look at the past. This extends to investment rental properties as well; a house that has a good rental history and that comes with a list of prior tenants is quite a valuable asset.
These properties are usually so great because they’ll start producing money for you from day one. Because of all the prior tenants, you’ll be able to justify starting at a higher rental price than you would if you were starting from scratch.
2. Only Buy Investment Properties that are in Demand
Next up, you’ll want to make sure that you understand the demand for properties within the specific area that you intend to buy in. And that means understanding which types of houses are most popular there.
Is the area a hot seaside location that has beach condos and waterfront homes? Or is the location an out-of-town suburb that is littered with townhouses? Answering this question will help you understand which types of houses are in the highest demand, which will be sure to direct you to the right rental investment.
At Property Point, we specialise in finding and buying investment properties for our clients. If you’d like us to help you find the perfect short terms rental property that will generate maximum returns for your investment, we have a fully qualified team of real estate experts that are more than ready and capable of doing the job.
So what are you waiting for? Contact us today!