Just because you find a potential rental property that is in your price range doesn’t mean you should go out and buy it. There are some factors that make one property more attractive as a potential rental than others, and some mistakes that should be avoided. When you know what you are looking at and what to avoid, you can be more assured that your investment will be a success. As a good property manager, you will want to know what you are up against.

As an example, very old homes may not make the best rental investments. Older homes are definitely more likely to have major problems or need expensive repairs. This can certainly add up, especially if there are multiple issues that arise. Renters have the right to expect a property to be safe and free from major problems, and your likelihood of problems such as plumbing or electrical issues, leaks, or settling increases with very old homes. If you can spend the money to renovate and update, however, older homes can make for an excellent investment if they are well constructed. Homes with plumbing, electrical or other systems that can break down, or homes with old appliances will end up costing you money, in almost every case.

Another consideration is that homes with pools, either inground or above ground, do not usually make good rental properties. While it may be an attractive option for some renters to have a pool on the premises for their use, many renters with young children may see this as a potential danger that they do not want to deal with. Additionally, you will need to consider the insurance liability issues, as well as the various costs that are associated with the maintenance of the pool.

A high maintenance home will not make for a good rental. You need to decide how much time you are willing to spend each week or each month maintaining the home. The chores of mowing the lawn, taking care of the landscaping or grounds, shoveling snow, or other routine maintenance need to be planned for. Sometimes you can get your tenants to take care of these tasks, but many times tenants are renting for reasons that include not having to maintain their own property. If you want the work done, you should be prepared to take care of it yourself or be willing to hire someone to do it for you. You definitely do not want a rental property that appears to need work or one that looks run down in any way.

One of the most important considerations when purchasing a rental property is the location. This is similar to choosing a location for the home in which you will live in yourself. A property that is close to important life amenities such as schools, shopping centers, churches, parks or other community areas are generally more desirable than those that are far removed. When competing for tenants, it is much like competing for buyers—location matters.

Avoid properties that are less desirable, and make some decisions ahead of time that will help you with property management. Knowing the potential pitfalls can help your real estate investment be far more profitable.