10 Rental Property Red Flags to Keep an Eye Out For

Real Estate

Different renters are interested in different rental properties. As a result, there are a lot of rental properties that are viable even though they might not seem like it. Still, there are certain factors in rental properties that can make them less promising than most of the rental property investors that can be found out there. Here are 10 factors that rental property investors might want to watch out for:

1. Lack of Storage Space

A lack of storage space can make a rental property much less attractive to potential tenants because they need places to put their possessions. Generally speaking, this is more of a problem for family-oriented rental properties because families tend to have more possessions than singles. In some cases, it might be possible to lessen this problem by building either a shed or a similar structure.

2. Unfriendly Rules and Regulations

Different jurisdictions have different rules and regulations for rental properties. If such, if a particular piece of rental property is situated in a place with rules and regulations that interested individuals find excessive, they might want to pass up on it to save themselves the hassle.

3. Bad Layout

Bad layouts can ruin even the best rental properties. Even worse, it tends to be both expensive and time-consuming to fix bad layouts because in most cases, it isn’t a matter of something as simple and straightforward as moving a wall but rather much more fundamental in nature.

4. Small Bedroom

Homes are supposed to help people rest and relax, with the bedroom playing the most important part in that regard. As such, a small bedroom will make a rental property seem cramped and closed-in, which won’t make for happy tenants.

5. Small Kitchen

Kitchens are one of the rooms that see so much use in most cases that they can be considered an important selling point. Naturally, this means that a small or otherwise inadequate kitchen can have a very negative effect on a rental property’s desirability.

6. Small Bathroom

The bathroom is one of the most critical rooms in a home as well. It is perfectly possible to rent out a home with an unimpressive bathroom. However, most rental property investors will find that a well-appointed bathroom can have a profound impact on interested individuals’ perceptions, thus making them much more receptive to becoming tenants.

7. Environmental Issues

There are always people who will be looking for something that is as cheap as possible. As such, there is always a market for rental properties with environmental issues, whether said issues happen to be toxic waste or meth lab cleanups. However, environmental issues mean a lot of additional complexities, meaning that rental property investors might want to just look elsewhere.

8. Rural Properties

Rural rental properties can be as profitable as their urban counterparts. However, they tend to come with more property management challenges, meaning an increased demand on the rental property investor’s limited resources. Primarily, this is because rural rental properties are situated so far away from the cities, thus making it that much more difficult for the property managers and other relevant personnel to reach them whenever something comes up.

9. Huge Properties

Huge rental properties tend not to make for good rental properties. In part, this is because huge properties come with a much increased need for maintenance, which is going to eat up a lot of the rental property owner’s time, effort, and money. However, it should also be noted that there isn’t much of a market for huge rental properties because most of the people who want something so big are more interested in buying than in renting. As such, rental property investors with huge rental properties could end up with longer intervals between tenants, which mean more lost potential income.

10. High Crime Levels

High crime levels in the local neighborhood are always going to be a huge hassle for rental property investors. Primarily, this is because people don’t want to live in high crime neighborhoods, meaning that their choice of tenants is going to narrow by significant margins. Moreover, having rental properties in high crime neighborhoods means that they could very well end up suffering losses because of such incidents, thus eating into their profits by raising their costs.


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