Sorting through different properties on the market is complicated when you’re looking to buy a home for yourself, but it can be even more difficult when you are searching for a rental property. Investing in an older home can be a wonderful idea, but there are also potential downsides that can end up costing you serious money.
The Upside of Choosing an Older Home for a Rental Property
Older homes often have prime locations, since many new homes are built in more isolated areas. A great location near numerous businesses, malls and amenities can outweigh a property that might be in need of some updates. Location can also be a major factor for millennials or those looking to rely on quick access to public transportation and city life.
Even in prime locations, older homes are also typically more affordable than new construction. This allows you to lower your upfront cost and determine how much is needed for any renovation or upgrades. Then, you are the one in charge of determining how much you will spend on each project and the timeline for completing them.
The Downside of Choosing an Older Home for a Rental Property
Many of the cons of purchasing an older home for a rental property are the same ones that are present when purchasing an older home to live in. Older homes can have outdated plumbing and wiring or heating and cooling systems that need to be replaced. Some old homes might have code issues that need to be fixed. Windows that are less energy efficient won’t necessarily cost you money, but they will leave your renters spending more on energy bills and potentially increase the chance of dissatisfaction. Think critically before you purchase an older home as a rental property and ensure that you pay close attention during the inspection to avoid any surprises.
All County Denver Metro Property Management Is the Right Property Management Company for You
All County Denver Metro Property Management offers all property owners competent and honest property management services. From rental market evaluation to tenant placement, we can assist with all of your needs. Our team of real estate professionals looks forward to hearing from you about how we can make your investment a stress-free asset and keep your tenants happy. Call us at (720) 575-6100 for a free quote.