The modern real estate market is rich with amazing opportunities suited for the most diverse clientele. After all, every homebuyer has their unique wishes and dreams for the property, so it only stands to reason that you should be able to choose whether to buy an existing home, or a construction property. However, when you’re buying a construction rental, there are some crucial considerations that shouldn’t pass under your radar. Here are the key things to keep in mind.
Determine the popularity of the location
A rental property is vastly different than a personal residence. You might not want a home smack in the middle of a hipster district or a “loud” neighbourhood, but chances are that your short-term tenants are looking for such a place.
It all comes down to researching the popularity of the district with travellers and tourists, and making an informed decision to choose a location that will attract potential tenants on a regular basis. Remember, location is one of the key elements of a thriving rental property.
Research the local community
You might find the ideal location, but the local community is not welcoming to tourists or short-term tenants – this is a problem you will have to find out about well in advance, in order to avoid costly problems down the road. The local community should accept and welcome newcomers if you are to run a successful rental, so make sure to check out the local rental regulations and the social climate of the neighbourhood.
Have a say in designing the floor plan
The aesthetic appeal of the interior, as well as its overall functionality, will be the key factors that will determine the success of your rental property. Quite simply, modern tenants are looking for contemporary floor plans that portray an image of freedom, capaciousness, and unimpeded flexibility. This is why you need to have a say in choosing the floor plan and make it more of an open-plan living environment that will appeal to the 21st-century tenant.
Make sure the contractor is legit
One of the most important considerations for anyone investing in a construction rental is determining the credibility of the contractor running the project. Not only do these professionals need to be certified, but they should also use the latest construction solutions that will ensure the quality of the property, and the timely completion of the construction project.
To ensure the entire foundation is levelled properly, make sure the contractor is using a cutting-edge laser screed to even the building surface down to the micrometre. The builders should also run a completely automated operation in order to avoid human error and costly problems during the construction process, so check if they are using contemporary generators, mortar mixers, and other equipment that will help expedite the process without sacrificing quality.
Organise a home inspection
Inspecting a newly-built home might not seem necessary, after all, you were there for the entire process, but it is nonetheless a wise decision that could save you from making a bad investment. Before closing the deal for good, have a home inspector make one last check-up of the entire property, both inside and out, to check for any structural problems and if everything had been done per the construction blueprint.
Don’t forget about warranties
Materials, electrical and mechanical elements, structure, leaks, and workmanship warranties are a big deal. A key part of the selection process will be to ask the builders about the warranties they cover – what they are exactly, and how long the property will be covered.
A good rule of thumb would be to go with a builder that can offer you a one-year warranty on workmanship, five years on leaks, two years on electrical and mechanical, and at least ten years on structure. This way, you can rest assured that you have the necessary backup in case of any problems down the road.
When buying a new construction rental, numerous key considerations will come into play – considerations that will define the success of the property in the long run. Take these tips to heart in order to buy a construction rental that will yield the desired ROI.
About the Author: Lillian Connors can’t resist the urge to embark on a myriad of green living/home improvement projects and spread the word about them. She cherishes the notion that sustainable housing and gardening will not only make us far less dependent on others regarding the dwellings we inhabit but also contribute to our planet being a better place to live on. You can check her out on Twitter and LinkedIn.
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