House Hunt: Open Houses in Hillcrest Area Sunday

The importance of people skills and the ability to do your own repairs was the topic of last week's column. Another area that needs to be reviewed is finding the right property to turn into a rental. There are several factors that go into making a property into a rental.

"Location, location, location" is a byword in any kind of real estate. Evaluate your ideal location by looking at the rental market and proximity to your own residence. A rule of thumb is that you shouldn't own a rental more that 20 minutes from your residence. Not only is this important when it comes to repairs, but you will be more likely to keep an eye on the property if it is conveniently located.

The current rental market is very strong. People are not buying because they can't qualify, or they are hesitant to make a long-term commitment. This in no way makes them a less-discerning customer. As a homeowner yourself it may have been a long time since you looked at rentals.

To realistically evaluate the potential of a property look at it from the renter's point of view. Research rents by looking at Craigslist. This will give you a very quick overview of the market. You will see what current rents are, typically some photos of the rentals and of course the location of the property. If a picture is worth a thousand words, then a visit is worth millions.

Go to see some of the rentals and meet the landlords. Find out how you and your property would fare in the given market. You will be surprised. Your rentals should be good enough for you, the owner, to live in. That doesn't mean they need expensive fixtures or fancy wallpaper, just that they should be clean and up to date. This is your place of business.

Next week we will look at what to look for when going through a potential rental property.