Buying a rental property in Utah: Here's a few things to look for.
Owning a rental property is a great way to build wealth. Today we will cover some of the things you want to pay attention to if you are considering the purchase of a property.
If you have been involved in the Real Estate Industry, you have probably heard the term "location, location, location". This principle strongly applies to rental properties. When considering the purchase of a rental property, you will want to consider the proximity of the rental to as many of the following as possible: Universities, city centers, stores (grocery, retail, dining), church's, popular parks, as well as proximity to major employers of local workforce.
Rent ready? (unless you plan to remodel)
If you are hoping to have your rental property rented out as soon as possible after your purchase is finalized, it will be important to pay attention to the condition and functionality of the property. Think like a renter; would you be interested in the property and desire to live in it with its current condition? Are there any issues with appliances, plumbing, electrical, etc? A reliable property manager can point you in the right direction as a Utah rental properties.
There is also the strategy of buying a property that needs a little bit of TLC for a cheaper price. This is a great strategy, but requires a fair amount of extra time and/or money. Make sure you know what you are getting into with this type of a project before a purchase.
Verify the rentability
Zoning and legality- Real property is zoned for different purposes, determined and set by the County the property stands in. You want to make sure that your property is zoned for your intended purposes.
Example: You view a single family 2-story home. The current owner has turned the bottom floor into its own fully functioning living space equipped with bedrooms, a kitchen, bathroom, and laundry. You are excited about the potential of renting out this property to two seperate tenants to maximize income.
Potential problems: The home would have to be approved as a conforming "mother-in-law apartment" for the space to be rented as two seperated living spaces if you (the owner) plans to live in one of the spaces. To qualify for this, the proper entrances, exits, and etc must be built. If you (the owner) did not want to live in the property, and planned to rent the 2 seperate living spaces to different tenants, the home would have to be zoned as "mutli-family" and the property a "conforming duplex". It is important to do your research for these situations and consult the specific city/county in Utah to verify all requirements.
If you purchase a property and need help with the management of filling vacancies and month to month tasks, we would love to help. If you are reading this and thinking of any other critical aspects when purchasing a rental, comment and let me know your thoughts.
Founder - Ease Property Management LLC