It makes sense that you would be stuck with choosing a rental property as your next home. There are just so many options and you do not know where to start. Do you need something cozy to be able to handle the upkeep? Do you want to spend a little extra for a condo with hardwood floors? As hard as it is to decide what you want, it is all about a game of Mix and Match. (It’s not as simple as matching your outfit, but not as hard as a Sunday morning crossword.)
This may sound difficult, but finding the right rental property for you isn’t exactly as hard as finding a needle in a haystack. Though the odds for everything working out perfectly are relatively low, we can show you to find a property that is ideal and works well with your lifestyle.
What is Residential Rental Property?
Residential rental property means housing units that are purchased and rented out to other people. Most residential rental properties are bound by a lease or another rental agreement that is between the tenant and the owner. (The tenant is you and the owner is your landlord; let’s hope that they are nice.)
Residential rental property are dwellings that are zoned for housing. This could include single-home housing units or multi-unit apartment buildings. This means that the location of the residential rental property is designed only for individuals and families to live in.
On the other hand, commercial rental properties are properties that are leased out to businesses to rent out. (But, that’s a story for another time.) (Chen)
How Does Rental Property Work
Residential rental properties can come in different forms and sizes. If you are interested in a condo, an apartment, a townhouse, or a duplex, then you can find one to rent. You will find that residential rental properties are a different real-estate class to other types of rental properties. As mentioned above, commercial rental properties refer to properties that are rented out to businesses or corporations. Hotels and motels are from a different real estate class, as well. With hotels or motels, the tenant is only residing for a temporary period of time. For all three types of rental properties, each one has a different way of operating.
You will find that many people have experience with residential rental properties. As either the tenant or the owner, most people use residential rental properties as a way to live. (Now, you are going to be able to join the club, too!)
The way it works is that you will be able to rent a housing unit from the owner of the house. The housing unit belongs to the owner and you are the tenant. Most home-owners that rent out their units will require payment per month. There are other owners who would request payment every three or six months.
As you find a rental property, you should check with your landlord on the deadline of the rental payment. Additionally, you should double check whether you are responsible for paying for the utilities and maintenance of the house.
The Downside of Residential Rental Properties
If you are a tenant, then you should skip this section. The downside of residential rental properties applies only to homeowners. The risk that comes with residential rental properties is that it is not a liquid investment. This means that it is not stable money for the homeowner. If you cannot rent out your rental properties to individuals and families, you cannot guarantee income. Also, in case of a dry spell, you will not be able to get out of the residential rental properties industry. You might find that selling the investment is hard, and it will take a long time.
Another downside is when you change the tax code of the residential properties. When you change the tax code of the property, the tax treatment could change that could devalue the property.
Directories for Finding Rental Properties
There are different methods for you to find the right residential rental property that would suit your needs. God bless the internet and advanced technology, because now you can find what you need with a few clicks. This article offers you five different types of directories for finding residential rental properties. These directories are: the U.S Department of Housing and Development (HUD), Craigslist, Zillow, Apartment List, and good ol’ social media. (You can find anything on social media these days.)
These five directories will assist in finding the right rental property for you. You will find the location and price per month provided, which is basically everything that you need to know. As an initial phase, that is the main thing that you should know about.
Before embarking on your search, the first point you want to start at, especially if you have a low income job, is to see if the U.S. Department of Housing and Urban Development website offers any subsidies for you. You will find the website is very useful and has a lot of information on affordable rentals for those who are financially struggling.
The Housing and Urban Development Department has a website that is tailor-made for anyone who struggles to make ends meet. Through its website, you can find affordable residential rental property from lowest to highest price. (It’s okay, don’t be shy, everyone struggles.)
You have probably heard of this one, but Craigslist is definitely helpful. Craigslist has a lot of information that you will find useful in your search and sometimes you find offers that will be very appealing. While you can find anything on Craigslist, rental properties are one of the most common searches. You will find on Craigslist that you can filter through different postings. Craigslist offers different filters, based on U.S. states and cities.
However, be careful of their screening process. It is not the best. It is important to make sure that you investigate every lead you get thoroughly to prevent yourself from becoming a victim of a scam. (Better safe than sorry, right?)
When you are looking through housing units, you should make sure that the owner is legitimate and not just a scam. That way, you would not be able to lose money and struggle for a place to stay.
Zillow is a great directory for the real estate world, whether it is for buying, selling, renting, or otherwise. Zillow is a directory that is the Google of real estate; you will find everything that has to do with properties. This website is secure, user-friendly, and very easy to navigate through. (Even your grandparents can browse through without a problem.)
If you are the type of person who is browsing on-the-go, then Zillow is perfect for you. You can always download the Zillow application for your smart device. This could be on your phone, tablet, or iPad.
Apartment List is an extremely user-friendly website, which you can check out. The visuals are useful and it’s easy to navigate. This would definitely be a good place to start finding apartments/properties for rent. With an easy to navigate interface, you will be able to find what you are looking for.
Plenty of groups on Facebook and other social media platforms offer listings where you can filter through until you find something ideal. Similar to Craigslist, you will find an issue when it comes to the screening process. The major disadvantage lies in the fact that scammers tend to use social media which is why you need to investigate each and every lead thoroughly before making a commitment to proceed further.
Things to Look for While Looking for Rental Properties
There are several things that you should look for when looking for rental properties. It is not just finding a housing unit that fits your price range. The three main aspects that you should consider are: location, commute, and spacing of the housing unit.
Location, Location, Location
Always consider a property that is close to where you work and is in a low crime area. It’s also important to take note of the property’s distance from the nearest hospital, police station, and fire department to ensure that emergency services will be able to reach your location as fast as possible.
Commute (How to Go Anywhere without Losing Money)
Transportation is also something you need to be paying attention to. If you don’t have a car, how far is your apartment going to be from the nearest bus stop? It’s important to make sure your apartment is close to where you can easily access mass transportation so that you can get to work on time every day.
Commuting costs money and you will need to consider that when you are looking for a rental property. If you rent a house that is far from your place of work, then it will cost you twice as much to get there. So, while you’re browsing through your next home to rent, make sure you look at the distance between your home and your office.
It may not be an ideal world for you to live close to your office. You should consider the possible commute routes you can take from your house to your office. You could use a bus, tram, or the subway that will take you to your office. This could reduce the cost of transportation per month.
Area/Spacing (There is such a thing as too big.)
Consider what your needs require in terms of space. This means that you need to find a housing unit that fits your needs. No one likes being cramped up in a tight space, which is something that you should consider.
If you are a single guy with no children (or maybe you have a small pet), then invest your efforts in finding a smaller apartment. If you are a married couple with two or three kids, then you will of course require a lot more space. Remember that you should use your space, not keep it uninhabited.
According to Investopedia, residential rental properties refer to “Residential rental property refers to homes that are purchased by an investor and inhabited by tenants on a lease or other type of rental agreement. Residential property is property zoned specifically for living or dwelling for individuals or households; it may include standalone single-family dwellings to large, multi-unit apartment buildings.” (Chen)
There are three different types of rental properties, which are: residential, commercial, and hotels. Residential rental properties are made specifically for individuals and families that require residence. Commercial rental properties are properties rented out to businesses and corporations under a rental agreement. For hotels, since tenants only reside for a temporary period of time, then it you will find that it is an exception of rental properties.
Do Not Forget Though!
During the negotiation phase with the landlord, you should clarify a few things. You should talk to your potential landlord on the payment schedule and the utilities. Are you responsible for the utilities and maintenance? Also, should you pay your rent every month or every three months? These are very important questions that you should ask your landlord before renting a housing unit.
When you are looking for the right rental property, there are three things that you should look for. The first thing is location, because knowing the area is very important. The second thing is the commute, which is essential for your finances. The third thing to consider while looking for a rental property is the area or spacing. You should make sure that the rental property you choose is to your liking.
Additionally, as a landlord, you should think long and hard when you enter the rental property industry. The rental property industry is not an easy industry to get out of. You should be careful when you enter the rental property industry.
Chen, James. Residential Rental Property. 09 2020. 25 06 2021 <https://www.investopedia.com/terms/r/residentialrentalproperty.asp>.