The old real estate adage, “location, location, location” is easy to remember when thinking about what makes a good rental home. However, it’s less applicable to rental houses than it is to houses you buy and plan to live in yourself. For example, people will rent a house on a busy street but not buy one. This is because the thought process is a little different; renters know they will live there in the shorter term, so if there are other attractive things about the house, the location is not as important. More important than location when it comes to choosing a good rental home is size as well as condition.
SizeIn Portland, there is a demand for two bedroom houses, three bedroom houses and four bedroom houses. We often find a peak with three bedroom houses, because those are easy to rent out all year long. However, other sizes are appealing to different markets as well. Young couples moving out of apartments often look for two bedroom homes. Young families with children like to rent three bedroom houses, and larger groups of people might focus their search on four bedroom houses. When you are buying a house to rent out, consider the size of the home so you get an idea of who your ideal tenants will be.
You have to consider what the property looks like before you buy it. If you want to rent it out, you will want the condition to be clean. All of the carpets should be shampooed, the walls should be painted and look for an updated kitchen. You want the bathrooms to be attractive as well as functional. A house that looks good will be much easier to keep rented. I always recommend considering the “cute” factor as well. You might come across a house that has dated appliances or décor that is something other than modern, but it still seems to work for the house. If it’s “cute,” the house will attract renters who are drawn to eclectic elements. The standard white walls and tan carpet are not required in all rentals.
The final thing to consider when you are looking for houses to buy that might make good rentals is the price. If the property is priced right, we can always find a way to rent it.
Hopefully we’ve helped you figure out what kind of investment property will make the best rental in the Portland area. If you have any questions at all, please don’t hesitate to contact us at Mainlander Property Management.