Real estate development is both a lucrative and robust business. Unfortunately, this field has many landmines that can make the market quite hard to operate and penetrate. These landmines can result in the rental property owner suffering from massive losses. As a result, one needs to make sure that certain conditions are met to ensure the profitability of the business.

Six things an investor should consider to make sure his/her rental property is profitable include:

Screen for ideal tenants

The need to get highly qualified tenants for your property is crucial. Evaluating a tenant’s history goes a long way to understand how they will care for your investment. Likewise, evaluating a tenant’s credit will help an owner understand how consistently maintains their financial commitments.

We are seeking a win-win situation for both the tenant and the property owner as both of them will have benefited; the property manager will get the satisfaction of consistent rents and a cared for property while the tenant will have the comfort of well-maintained housing.

Getting the best tenant might also be difficult, hence the need for carrying out research first.

Location of the property

Location is key, too. Someone renting a house in a major city has different needs, desires & tastes compared to someone renting a home in the suburbs or further outside the city. Thus, the rent for the apartments will differ because of the way the houses have been built. Properly identifying the pro’s and even the cons of your property’s location will assure that you find and communicate a property properly.

Consider Green Options: Install solar panels

Although some may say that this is more likely to benefit homeowners, it might not exactly be the case. When there is excess energy collected it may in some instances be sold back to the power grid. This creates a new avenue of income for the property owner. It can also be used as a public relations talking point in your listings.

By installing solar panels, this may result in reduced energy bills for the tenant, and this may result in the property owners retaining tenants. Conversely, this amenity will increase demand, which can increase the rental market value of the home.

Property Taxes & Registration Fees

In some residential locations, local municipalities require registration of rental homes. Some municipalities individually tax the property owner on rental income – separate from state/federal income tax. Usually, these taxes & fees are not uniform between geopolitical boundaries, hence having a property manager to do this research can help a property owner make investment decisions. It is important for a property owner to review their investment goals and strategy when evaluating a property’s location. It’s important to properly assess tax planning with a competent CPA.

Criminal Activity

Every tenant & homeowner is sensitive to the criminal activity in and around their home. An area that has a lot of illegal activity will likely result in a rental property that suffers to achieve market rents. Most tenants will vacate their houses once they notice that the area has crime registered all over it. Online tools are available in evaluating the criminal activity reported around each neighborhood.

Property owners can provide certain tools and resources to make a property more desirable. From security systems and alarms, to flood lights and motion sensors, to app-driven cameras that provide tenants with a greater sense of comfort in a crime-stricken area.


Many tenants elect not to buy a home to remain flexible in location and responsibility. Not all tenants stick around forever, and not all of them know how to maintain a rental houses; the law says an owner has a duty to maintain. If a tenant moves out the property, the owner should ensure the home is refreshed, and whenever possible upgraded, to attract the best tenants. Even minor improvements can make a big difference. Pay attention to fad design upgrades, as well. Improving the look of the backsplash behind the sink may not cost much but provides a lot of perceived value to future prospects.

Making sure ones rental property is profitable begins with the service offered by the property owner to his/her tenants. Better services mean better profits. If you want magnified profits of your rental property in Portland, OR, InterWest Properties can show you how they’ve been keeping tenants happy for nearly 35 years.

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