It might not be as profitable or as easy to maintain as you think.
Is owning rental properties in small communities a smart move? Many people see owning rental property in small towns or rural areas as an excellent opportunity to make money. However, this type of investment can come with some significant risks that might surprise you. The truth is, it might not be as profitable or as easy to maintain as you think.
Let’s dive into some of the challenges you need to be aware of and how to protect yourself.
Know your community’s economy. When thinking about investing in a rental property, it’s not enough to simply find a house in a nice location. For example, if a large factory or plant closes in a small town, it could cause many people to move away, leading to fewer renters. On the other hand, if a new business or factory opens in town, it could attract more people looking for rental homes.
There might be limited rental pool. In smaller communities, the number of people looking to rent homes is usually smaller, too. This means there’s less demand for rental properties, making it harder to find tenants. If you're depending on a whole-house or apartment rental for steady income, this limited rental pool could hurt your earnings. Make sure there are enough people interested in renting, and be patient as you fill those vacancies.
"Stay informed and ensure you have a team in place to handle issues as they arise."
You need professional services. The most important thing I can emphasize is working with a really good, professional service. Make sure you know someone in the community, because if you don’t, you might end up relying on a property management company or handyman that's the only option in town. They can get by for a long time without much competition.
Without someone reliable, you're stuck with the only choice available, and they might not be providing the quality service you'd expect. For example, in a big city, property management companies often have dozens of 4.5-star reviews on Google.
My recommendation is to ensure you have a professional in the industry who can connect you with other reliable professionals. Otherwise, you may end up dealing with people who aren't professionals, which could result in wasted time and effort.
Stay informed and ensure you have a team in place to handle issues as they arise. If you have any questions or need help managing your rental, contact us today. Just call (210) 802-9959 or email info@peaceofmind.co. We’d be happy to answer your questions and provide you with the services and assistance you need.