Many landlords find it appealing to invest in rural rental property. There are several advantages to investing in a rural rental property, but there are also several concerns that landlords from metropolitan regions may be unaware of. Be sure to do your research to be informed of what you are getting into when acquiring a rural property.
Rural Rental Property
Most people envision metropolitan areas, homes in the suburbs, and massive multi-unit buildings when they think of real estate investment. As a builder or investor, you know that the world of real estate investing is more complicated than that, but have you explored rural build-to-rent investments? Many individuals are interested in abandoning cities because of the rising expense of living in metropolitan regions; therefore, investing in rural build to rent houses may be worthwhile. But, of course, this form of investment has its own set of advantages and disadvantages, and we’ve detailed some of the most important factors below.
Market Size Reduction
Small communities can be fantastic for landowners; however, there are a few things that you need to consider before you purchase your first rural property. First, small rural communities generally have less tourism and large businesses, which means there are potentially fewer jobs in the area. Because of this, the rental market may be considerably smaller and less dependable. This is not to say that you should pass on rural properties; it merely suggests that you may need to do some in-depth research before investing.
There are other advantages to working in a smaller market. For example, making crucial relationships may be simpler in small towns since they are more closely linked and have a stronger sense of community than in urban settings. Getting to know the town’s realtors, members of local government, and building connections with local businesses and residents may all help you fill your rural properties.
Vacancy and Turnover
Purchasing rural land will offer both advantages and disadvantages. Fortunately, one of the advantages is that rural properties are often less expensive than metropolitan properties. There’s also a smaller population. Because of the reduced population, you will have less competition from other landlords. Tenants will also likely stay with you longer, resulting in lower turnover. On the other hand, finding new tenants may be more challenging to replace tenants that decide to move. However, building a solid network and reputation in your region is an excellent way to alleviate this problem.
Septic Systems in Rural Homes
You may be unfamiliar with septic systems if you have only had experience with urban homes and areas. In the city, public sewer systems handle garbage from urban dwellings, and you would only need to be concerned about the state of your home’s plumbing. However, septic systems require special attention, and you may need to be more active in their maintenance.
The majority of rural properties are not on city sewer lines. Instead, most of them will have their own septic system. Septic systems can fail or become clogged, and these problems become your responsibility. Plan for septic upkeep and pumping when creating a budget for a rural property. A septic engineer should inspect the septic system before you buy a home to determine its condition, past maintenance, and whether there are any concerns.
When renters move into your home, you must ensure that they understand how to treat a septic system correctly. Toilets, drains, and garbage disposals link the septic system to the residence. Septic system experts suggest disposing of biodegradable products; otherwise, they should not be disposed of in the septic. Items that are not biodegradable include fats and grease, chemicals, and paper products such as diapers and paper towels.
Wells are another rural property item you may not know much about if you live in a city. Rather than relying on public water, rural properties may have their own well to generate their water. Before purchasing a home, it is vital to inspect the well and water to ensure that the well provides enough water for the tenant’s needs and that the water is safe to drink.
If the property’s water supply is insufficient or the water pressure is too low, it may be necessary to dig a new well. A skilled water engineer can assess the well and the water supply’s sufficiency. A water engineer will test the well water for chemical pollutants such as particular microorganisms, nitrates, or ions. If the water contains any of these items, they may suggest a filtering system to resolve the problem.
Check the property’s well permit and local water restrictions to see what your tenants may do with your water.
With any rural property, you must be sure that you understand where the property lines are. This is especially important if the property has a lot of lands. There is a greater possibility of problems with boundary lines and easements. When buying rural land, contact a surveyor to identify the exact location of the lines. The survey can also reveal whether anyone else has the authority to use the land through an easement or a neighbor’s shed inadvertently placed on your property.
Seasonal Maintenance for Your Rural Property
Outdoor care will be a significant chore, depending on the size of your rural property and what is on it. A big lawn, for example, will require mowing each week during the spring, summer, and early fall. During the summer, outdoor care is not only an aesthetic concern, but it is also necessary to keep your home safe from pests.
Another example of outdoor maintenance is if the property has fruit trees. These trees will require maintenance to ensure their health, so they do not become a safety hazard. Each fruit tree species has its own set of maintenance requirements that you should be aware of. For example, trees are often trimmed and treated in the early spring before they yield in the summer and early fall. Then, when the fruit starts to fall, it is time to pick it up. Otherwise, it will deteriorate, become unsightly, and may attract pests and illnesses.
Prepare your property for the winter to avoid burst pipes, fallen trees, and snow and ice accumulation. Your renters can help, especially if you remind them of their snow removal and de-icing obligations.
Rural property can offer many advantages, but investors should thoroughly grasp the ins and outs before committing to a property outside of an urban area.
Wrapping it Up
No matter where you decide to invest in rental properties, every area has unique factors. Always research the area you are considering investing in and make sure you understand the requirements and maintenance for the type of dwelling and location your rental property is in. Additionally, don’t be afraid to venture outside of your comfort zone with a rural property as long as you understand the ins and outs of rural rentals. Finally, if your goal is to grow your rental investment business, you may consider hiring Real Property Management Consultants, your experts in residential property management. We are here to support you as you grow your business. To learn more about how we can help you, contact us today!
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