Saving money for a down payment on a home is no easy feat, which is why I started looking into various ways to make sure that I had things sorted out like I should. I began working with a real estate agent to chat about what to do and how to start saving, and they explained how much I needed if I wanted to avoid private mortgage insurance, and when the market typically trended upwards. It was really neat for me to see everything I could do with the advice, and saving became easier after I had a clear goal. Find out more about real estate by reading this blog.
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Buying A Rental Property? Here's How Its School District Affects Which Tenants You'll Attract
Cathy Frazier
Buying a rental property can be a risky venture, and two of the worst things that can happen to your property are damage caused by tenants and prolonged vacancy. To mitigate this risk, you need to make sure that your rental property attracts the right kind of tenants. Great tenants pay their rent on time, don't cause undue wear and tear to your property, and are unlikely to move out. When you're buying a rental property, here's what you need to know about how the school district it's zoned for affects the types of tenants it will attract.
Great Schools Make Happy, Stable Tenants
Families with children make great tenants—they're very stable, since they won't want to move and force their children to switch schools. A 3-bedroom, 2-bath property that's zoned for a good school district will attract numerous families as tenants, making these types of properties great investment opportunities.
All schools in the United States are assigned a letter grade ranking by the federal government. You can easily look up what schools a home is zoned for online and find out their corresponding letter grades. Any rating below an A could be seen as a downside for families.
For the perfect rental property for families, you're looking for a home that's zoned for excellent elementary, middle, and high schools. If a home is zoned for a great elementary school but a troublesome middle school, your tenants may just decide to move out as their kids age in order to provide them with a better education. Great schools at all grade levels can retain tenants in a rental property for years and years.
However, Not All Tenants Care About School Districts
However, it's important to know the type of tenant you're attempting to rent to. If you're planning on purchasing a small investment property in a quiet neighborhood, you may want to focus on renting to seniors—they're also stable tenants because they don't want to deal with the hassle of moving. In this case, however, the school district becomes completely unimportant. You're better served focusing on other location factors such as the neighborhood's crime rate.
Nearby Universities Are a Major Downside
There is one type of school you need to watch out for, however, and that's universities. Rental properties near universities will attract college students as tenants, and you may have difficulty finding other types of tenants to move into the property—few adults want to be surrounded by partying college students all the time. College students are poor tenants because they'll typically move and leave your property vacant over the summer. Avoid homes near universities if you're looking for a great rental property.
If you're having trouble finding a single-family home zoned for excellent schools across all levels of education, contact a local real estate agency such as Lake Cumberland Real Estate Professionals. Real estate agents are familiar with which homes are in neighborhoods with excellent zoning. As an added bonus, they can even help you find a 3-bedroom 2-bath home in a safe neighborhood that will attract numerous families as tenants.
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