First in our “The Role of the Tenant for the Income Property Investor” series…

Every income property real estate investor understands that having tenants is critical.  Empty income property cost money, they don’t generate it.   So what’s more important than having tenants?  Having the RIGHT tenants.

Potential investor often shy away from income real estate, based solely on the horror stories they have heard about bad tenants.  Obviously there are no guarantees that any tenant will be trouble-free, but there are some real estate management things to watch for and some steps to take to ensure that your tenants will be the best ones available.  This week, we begin a series of articles designed to help you find the perfect tenants.

The Best Location for Income Property

When you set out to purchase your next residential real estate income property, think about the location.  The same house in a less-desirable area may cost substantially less than one in a better neighborhood, but run the numbers.  If you have a high level of rental turnover, you’re looking at vacancy and turnover costs much higher than for a property that has little turnover.  And since you’ll likely be able to command higher rental rates in the better area, it won’t be long before that cost difference is offset.  Invest in the best area you can.

Tips for Finding “Those” Tenants for your income property

You know the ones…  Stable, responsible, employed.  It’s a violation of federal law to profile tenants based on race, ethnicity, national origin, religion, familial status, gender, and handicapped status.  However, it is not only acceptable but wise to establish requirements for employment stability and financial capacity.  Many income property owners require credit and criminal background checks also.  But let’s talk about this for a minute.  The huge number of foreclosures happening right now, particularly in Arizona, has produced a bumper crop of stable people use to owning their own homes.  When they lose their home, they will seek out a rental property that is of similar quality in the same general geographic area, since those with children will not want to change school districts.  Most of these people make IDEAL tenants for income property, because they know how to care for a property and they are likely mortified that they’ve had to endure a foreclosure.  But, since there was a foreclosure, their credit is severely damaged.  If they can demonstrate employment stability and financial capacity (by way of a substantial security deposit), these are likely to be the best tenants you will find.

Tips for Finding the Best Location to Attract “Those” Tenants for income property

Contrary to popular belief, the best locations for the income property investor are not the most highly priced rental areas.  Identify the top ten most highly rated school districts in the area, and start with those areas.  Among those areas, locate those with the highest percentage of foreclosures and you’ve struck income property investor gold.

Watch for more on this topic, coming soon!

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NOTE:  We pride ourselves on bringing you the most informative, up-to-date, and accurate information possible about the often-confusing world of real estate investing.  Nothing we post however is intended to be taken as legal advice.  You should always contact a  legal professional for information and advice about your own unique investment scenarios.

Artisan Real Estate Group is one of the top boutique real estate firms in Arizona.  We provide an end-to-end suite of services to our investor clients, including a full range of residential and commercial real estate services, investor services, property remodeling, restoration, and rehabilitation, real estate finance consultation, REO and bank-owned property services, trustee sale consultation and bidding representation, and new home builder services.   Our international team specializes in helping investors from all over the world with their Arizona real estate transactions.  Contact us today to find out how we can help you grow your personal wealth and investment portfolio.  Artisan Real Estate Group, http://www.artisanrealestategroup.com/  or call us at (602)644-1280.  Email: info@artisanrealestategroup.com