Real estate investment rental properties are an excellent investment strategy. A rental is an asset that a landlord leases to a tenant for residential or commercial purposes on specific grounds. Such agreements may last for a short while (vacation rentals) or an extended period (apartments).

The profitability of such assets depends on their attractiveness. Attractive rentals generate income consistently without excessive expenses. On the other hand, an unattractive rental will hardly generate rent even if it costs exorbitant fees to set up.

It becomes imperative to know what makes a rental attractive to renters. To help you, the following is a list of essential factors to consider for investing in rental properties for beginners. However, we'll first look at the most advisable property type for a newcomer to the industry.

What Rental Property Type is Ideal for a Beginner?
Single-family apartments have always been the ideal asset type for real estate newcomers. Why? These assets have an excellent demand rate for most parts of the year, provided you select a good location.

Furthermore, such properties are simple to manage. You're dealing with only one tenant, whom you must have vetted. Therefore, you may not hire a management company for maintenance or rent collection.

Single-family homes are relatively affordable to acquire, compared to multi-family apartments or commercial duplexes. You're good to go with a 20 percent down payment. However, it's imperative to point out that you may also invest in other rental property types and reap considerable returns with sufficient planning and research.

Seven Factors to Consider Before Your First Rental Property Investment
Miscalculations are a common occurrence in the real estate industry. Assets that hold promise at a glance may turn out to be unprofitable in the long run. As such, it's imperative to research the market exhaustively to determine the actual intrinsic value of an asset before your investment.

Your rental neighbourhood is the most significant determinant of the apartment's vacancy rate and the tenant types it attracts. A rental in a tourist hotspot like Naples tends to boost the most during the holiday seasons and will mostly receive applications from tourists.

Conversely, a rental asset in a family-friendly environment makes for a steady income stream throughout the year. As you may expect, young families would be your typical applicants.

Taxes are mandatory for rental properties. Therefore, it's necessary to inquire about the structure in your target location before your decision. You want to know the amount you'll be losing in this department annually, although you should note that high property tax rates may not be a terrible thing if your apartment is in a favourable location.

Consult the town's tax assessment office for important information and check with existing homeowners in the neighbourhood for more insight. Ensure the taxes are reasonable and will not increase randomly in the future.

Labour Market
An area with improving job opportunities is desirable, especially to young families just kick-starting their careers. You can't say the same for neighbourhoods with poor employment availability.

You may figure out this metric by consulting the local library or the American Bureau of Labor Statistics. Keep an eye out for upcoming enterprise establishments, too. People are sure to move to a location when there's a business expansion there.

It's safe to assume that your tenants will appreciate a company in their backyard, if you will, too. The process may seem tasking, but remember that profitably investing in rental properties for beginners requires lots of research.

Crime Rate
Most rental investment tips are natural thought processes. It's a no-brainer that no one (tenant or homeowner) appreciates life in a crime-ridden community. As such, it's best to avoid neighbourhoods with high crime rates.

Start by checking for accurate crime records for the neighbourhood with the local police or public library. Focus on the frequency of property and violent crimes and determine if crime rates are declining or growing. You may conclude by speaking with others to review security measures in place.

Amenities and Facilities
It's impossible to dismiss the relevance of updated amenities to the value of a location. Facilities make life easier for people, so it's only natural that tenants insist on having the best in their environment and apartment.

Tour the neighbourhood to ascertain the quality of amenities on offer. Visit the parks, schools, gyms, theatres, restaurants, hotels, public transit, and other facilities that may interest renters. This consideration includes the features of your selected apartment too.

An expert, complete guide investing in rental property for beginners recommends cross-checking the standard amenities across the neighbourhood with those available in your target property. Would your tenants appreciate an apartment without a pool if all houses within a mile have their pools?

Foreseeable Future Developments
Future growth and development projects may improve the value of your property before and after you lease it to a tenant. Suppose a supermarket will soon be built close to your rental. You can include it in your property ad and charge accordingly.

The city planning department has information on all plans or developments that the neighbourhood will undergo in the foreseeable future. Consult the unit to know what could give your property a value boost and what could compete with your asset.

Listings and Vacancies
Abnormally frequent property listings are telltales of an irregularity within the neighbourhood. You'll have to figure out why so many vacancies pop up in the community regularly. What do tenants see that put them off after securing their leases?

Whichever the case is, note that high vacancy rates are a precedent for lower rents. Therefore, it's imperative to know if there's a solution for what triggers the listings. Don't invest in the area if the situation is irredeemable.

Rental homes remain a fantastic property investment for beginners. They provide you with a passive income stream and are easy to set up — single-family homes, for example. Small-scale rental investing makes for a platform to launch a more extensive portfolio when you handle it appropriately.

Remember that investing in rental properties for beginners is a straightforward affair, provided you research intensively and follow practical guidelines from proven real estate experts.