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How to build a house considering rental maximization

How to build a house considering rental maximization

For those who have in-depth knowledge of economics and investment techniques, the information that houses, cars and other assets are not an investment is no longer new. And yes, the information is technically correct, but that does not mean that it is not possible to profit from the construction of houses and buildings and make this your main source of income. 

According to data published by Bank of America, the year 2022 is expected to end with 10% growth in home prices in the United States. This makes this market an excellent opportunity for anyone hoping to build a house considering rental maximization. 

But for the success of this investment, some factors must be taken into account even in the planning phase. After all, for those who buy real estate at a reduced cost for resale, the process seems much simpler. It’s buy and sell. However, building a property to make it your source of income is a good idea as long as that goal is at the center of your planning from the start. 

That’s why we brought in this content some tips on how to build a house considering rental maximization. Check out! 

Three tips for building a house considering rental maximization 

How to build a house considering rental maximization

Be careful when choosing your building site 

The first step in starting a construction is always choosing the location and acquiring the land. However, if your objective is to build a house considering rental maximization, the factors considered in the choice are very specific. 

For example, if your goal is to buy and sell real estate, your focus should be on areas with price appreciation or projected appreciation. If the construction is a property for your own use, then you should consider what you like in that region. But if renting is your focus, then which of the locations attracts residents and people interested in doing business with you? 

When we talk about houses and residences, the neighborhood’s safety levels, the quality of schools and the profile of the neighborhood directly interfere. So, pay close attention! 

Investing in a cheaper region, just to reduce construction costs, can make you lose profit in the long run and can turn a great opportunity into a terrible deal. 

In this case, it is worth following the reports from the municipality, the news about that specific area and even talking to the residents. Quick market research helps you understand what your prospective tenants expect from a rental home, what they would consider and what would make them pay more in rent. 

All this must be considered in your construction planning. 

Invest in materials and skilled labor 

We have already talked here on the blog about the importance of selecting quality building materials and investing in specialist and professional teams. This not only reduces (a lot) the costs of your venture, but also guarantees a satisfactory result and avoids future problems. 

At first, this type of investment may seem high and unnecessary. After all, there are always cheaper options and much more affordable, right? Wrong. Cheap can be much more expensive later, especially when we talk about maintenance costs and the need to redo some of the work. 

It is necessary to remember that the property will be used by others and that preventive maintenance will not always be up to date. In the same way, possible problems with the structure of the house, electrical structure and plumbing, can be a headache for the owner and cause of disagreements between tenant and renter. 

Therefore, it is worth researching prices, suppliers and planning to save on construction. But price should never be the main deciding factor. 

Have all licenses and certifications on hand 

If for the construction of a property it is necessary to guarantee a series of authorizations and documentation, for rent it is no different. Therefore, before placing your property on the market for lease, check that all documents, authorizations and certifications are valid and up to date. 

This way you guarantee security and win the trust of your tenant, avoid legal problems and keep a record of the entire process. 

During the lease negotiation, also make sure to record everything that has been agreed through a contract, which protects both parties and guarantees the fulfillment of the negotiations. 



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