Earlier, we talked about four things that you need to watch for when you are buying a rental property in Birmingham. As property management pros, we’re used to advising clients on what makes for great buys, and what factors play a role in making these decisions. One of those factors was location. Here, we’ll dive a bit deeper into the role location plays in choosing a rental property to purchase, and why it’s important to consider. Location Is Everything In real estate, location is extremely important. We all know this, but sometimes we forget just how important location is. For starters, the right location impacts demand considerably. Let’s face it – some areas are just less desirable than other areas. A lot of people want to live in certain key areas in the Birmingham area, but there are other locations that have minimal demand because of where they are and the characteristics of the neighborhood. Location impacts demand, which affects how many prospective tenants will want to view your property. If you can’t get a certain number to even come see it, you’re in an uphill battle. Location Is Also About the Home Itself The main factor when considering location is the neighborhood, which involves various things like crime rates, proximity to transportation and work, nearby amenities, and the composition of the neighborhood. But location also involves the home itself. For example, a home may be located on a busy street, which can cut down on demand. A home could also be located at the end of a dead-end road, which impacts accessibility. Or, it could be located in or next to a commercial or industrial area, which can give some people pause when evaluating it. Putting It All Together Carefully evaluate your home’s location before you considerbuying a particular property. You need to know how prospective tenants view the area and where the home is actually situated. That way, you can make an informed decision about not only whether or not to buy, but also about how much you plan on charging. Rates are impacted by location, so it’s definitely something to consider. Contact us for more information on various neighborhoods and areas in Birmingham so you can make an informed choice.
Matthew is the CEO of Evernest. He is a student of the book Good to Great and is passionate about building the best property management company on the planet (and maybe even the universe if Elon Musk will hurry up). You can usually find Matthew at the baseball field with his son, at a dance recital with his daughter, or at his favorite restaurant with his wife, when he’s not in the office. And if you can’t find him in any of those places, it probably means he’s traveling.