5 Things to Consider When Buying a Rental Property in 2022

Are you looking to purchase a residential rental property to boost your investment portfolio?

Rental properties can be exciting and rewarding if you make the right choice. But income and rewards aside, investing in real estate can be daunting for a first-time investor.

That’s why it’s important to do detailed research before you dive in so you’re on top of all the pros and cons of investing in a rental property. 

Learn more on How To Invest In Rental Property In Nigeria

Here are 5 features to consider before you buy a rental property in 2022

Neighborhood

The neighborhood in which you buy will determine the types of tenants you attract, your rent, and your vacancy rate. If you buy near a university, chances are that students will dominate your pool of potential tenants and you won’t struggle to fill vacancies after every school year depending on the type of property you buy.

Crime Rate

No one wants to live next door to a hot spot of criminal activity. Check the rates for vandalism, and serious and petty crimes, speak to residents in the area, visit the nearest police station, and decide if want your tenants to enjoy their night’s rest, or live in fear of being robbed or attacked.

Future Developments

Carrying out a quick Google search on the neighborhood or driving around for a few minutes can help you discover the potential a rental property holds. If there is a lot of construction going on, it is probably a good growth area. 

Watch out for new developments that your tenants will benefit from, and that will increase the value of your property.

See How to get Quality Tenants for Your Rental Property

Property Management

Being a landlord can be a headache at times, so you should consider whether you’re willing to deal with 3 a.m. phone calls when there’s a plumbing disaster.

You can hire a property management company to take care of your property and manage activities like procuring tenants, supervising, and maintaining the property.

Average Rent

Whether you’re buying a rental property to earn passively or as a major source of income, a good rental income is important. So you need to know the area’s average rent. Make sure any property you consider can bear enough rent to cover all the expenses you’ll incur on the property. 

Research the area well enough to determine where it might be headed in the next five years.

Discover how to carry out rental property improvements  here

Rental Property is a profitable real estate investment platform you can take advantage of to improve your investment portfolio. You have to make sure that whatever property you are investing had a high property value in order to recover your profit faster. 

MKH has a number of properties across Lagos and Ibadan with which you can start your rental property investment. These properties are strategically located and designed with premium features that make them very easy to rent out. You can contact us by clicking here for more information.