What Makes a Good Sioux Falls Investment Rental Property?

If you are new to the rental property business, you may be apprehensive about investing in your first Sioux Falls investment rental property. Do you know how to attract renters? If you have ever rented a home yourself, you may have a good idea of what renters are looking for. Many homes rent to families who enjoy not having to take on the entire responsibility of owning a house, or who are new to an area and checking out that neighborhood before they buy a home. If you are trying to decide what property would appeal to future renters, here are few suggestions:

  1. Look for a Sioux Falls investment rental property with at least 3 bedrooms and 2 bathrooms, and located in a neighborhood where home values are appreciating. This will position your property to command a higher rent.
  2. Look for properties no older than fifteen years. A new property will (usually) help keep down maintenance costs, and save you money in the long run.
  3. Look for homes that are located on quiet streets and have fenced yards as they are usually more attractive to renters who may have children or pets.
  4. Try to find a property that is near places people want access to: Schools, public transportation, shopping and dining.
  5. If the home is in a HOA, there may be restrictions on renting, so research this before purchasing. Also, if tenants are allowed, then there may be fees for violations, as well as signage and parking rules. Be sure to figure out what the HOA codes are, and think about how you will enforce them with your tenants.

Remember that a Sioux Falls investment rental property is a long-term commitment and the decisions you make now will affect you five, ten, and even fifteen years in the future. The property you choose will affect what type of tenants you attract, how long the home stays vacant, the amount of rent you will be able to charge, and other aspects. You should also check to see whether a professional property management company is located nearby to assist you with aspects such as tenant screening, evictions, rent collection, evaluations, accounting, and other aspects that you may need assistance with.

Would you like to learn more about our Sioux Falls property management services? Please contact Real Property Management Express at (605) 274-7373 or by emailing josh@expressrpm.com.