Property investment offers the type of stability that offers a reprieve and ROI to many who are weary of the volatility of stock investing. This is because property is a long-term investment which generates more steady and dependable returns than the stock market, and that is particularly true of rental properties. For rental real estate owners or investors, the secret to this success is in attracting and retaining good tenants.

Luckily, there are some features which make certain rental properties more successful than others, and landlords who are aware of these features and trends will benefit. These are the top features of a successful rental property and how to find them:

The Neighborhood

The location of a rental property can determine both the vacancy rates, and the types of tenants a landlord will find. In university towns for example, prospective tenants are more likely to be students, which means vacancy rates may be higher during the summer months. Some potential landlords purchase a property that is within 30 minutes of their personal homes, close enough for the option to personally manage the property if needed and to be familiar with the area and its popular amenities.

Other factors such as the median cost of the neighborhood properties and the overall consumer price index (CPI) will also affect the types of potential tenants landlords will come across. It is suggested that landlords rate neighborhoods of interest based on factors such as the median home values, average individual incomes, employment rates and more.

Job Market Growth

One of the most key features for a successful rental depends on something more abstract than a property itself. An area which is experiencing drastically growing employment opportunities is more likely to experience an influx of new homebuyers and prospective rental tenants. Potential landlords should be on the lookout for announcements from major companies looking to launch offices in new locations, as these would dramatically boost occupancy rates in surrounding locations.

New business developments like these can equal extensive growth in the property sector depending on the type of company launching new offices. Landlords can use residential demographics data to determine this type of information.

If the local population is expanding faster than the supply for housing, then vacancy rates will fall and higher rental prices become possible for landlords.

Amenities and Schooling

Another important feature landlords should consider is the availability of entertainment and public venues in close proximity to the rental property. Real estate experts often suggest that investors should tour neighborhoods of interest and make a note of any parks, restaurants, gyms and other interesting public amenities that the local demographic of prospective tenants would enjoy. These types of spaces are typically sought after by many when viewing new properties, and can affect both the pricing of the rental unit and the desirability of the unit to tenants.

Depending on the neighborhood's demographics, schools could also be a valuable amenity for renters. In neighborhoods where families are the target demographic, good schools in close proximity can affect the value of the property investment positively, and are a good draw for long-term tenancy.

The Property Condition and Age

It goes without saying that older properties will often have extra maintenance expenses which could eat into any potential profits landlords might have projected. However, newer properties aren’t always excluded from this rule either, as some are poorly constructed compared to sturdier, older properties and may need renovations as well. This is why no matter the age of the property, it is essential for landlords to establish and confirm any prior upgrades or maintenance done to the property so as to determine any budding future pitfalls.

For rental properties, which are typically occupied during renovative upgrades, it is key that the condition of the property is good and maintenance done quickly and unobtrusively so as to disturb tenants as minimally as possible. Rental properties which are not maintained well could motivate tenants to seek better-managed properties elsewhere, and leave the landlord with a unit not only needing repairs, cleaning and repainting but also marketing and renewed efforts to attract replacement tenants.

Rental real estate has been rapidly growing over the past few years, accounting for a total of up to 60% of all mainstream assets and showing no signs of slowing down any time soon. Owning a rental unit is a great way to diversify an investment portfolio with more steady and dependable returns than stock investing. Features associated with successful rental properties include the property’s location, its proximity to amenities and the local job market growth are only a few of the factors influencing a property’s value for the better.

Landlords and real estate investors should be keenly aware of these features as a way to attract interested and desirable tenants and increase their property value in the long-term.