(3-min read)
Are you tired of looking for that perfect house to buy as a rental property — one that oozes rental potential? Why not just build it? Let’s look at a few reasons why you may want to consider building new homes to rent out rather than buying existing ones.
1. New Houses Appeal to Renters
Let’s face it — we all love new stuff. A new house is no exception. While historic houses may possess a certain warm and historical charm, the majority of renters prefer newer homes with updated amenities. If you really want to stand out from the rental competition and maximize the rent price, newer homes are incredibly appealing to renters.
2. Customize New Builds with the Popular Amenities
If you talk to any realtor or landlord, they will tell you that there are certain home design trends that stand out to shoppers. Granite or quartz countertops, open-concept floorplans, hardwood floors, intricate kitchen backsplashes, barn and bowl sinks, his-and-her you name it — the list goes on. Many landlords attempt to update existing homes to reflect design trends. Building new rental properties, however, gives you a clean slate to build homes with design elements that tenants crave.
3. Cheaper Insurance & Tax Credits
If you’re looking to quickly get some money back on a real estate investment, new builder credits, rebates, and incentives can add up. When it comes to homeowner’s insurance, the newer the house, the lower the perceived investment risk. This can make the insurance rates for a new home construction significantly less than an older property. Also, because a new property will be substantially more energy-efficient than older ones, this means that home builders are eligible for a variety of tax credits. If you install solar power systems in the house, not only will tenants love you, but you will be able to watch the tax incentives skyrocket. If you’re looking to maximize your income from a rental property, every bit of savings counts.
4. New Homes Require Much Less Maintenance
Buying an older home as a rental property increases your risk of winding up with a money pit. On the flip side, building a new home to use as a rental property is typically a maintenance home-run. Because everything about a new home has hardly seen the light of day, the maintenance on everything from the appliances to the HVAC unit will be nearly nonexistent for many years to come. To make matters even better, when you build your rental homes with Perry Hood Properties, the home construction professionals out of Tulsa, Oklahoma provide all buyers with a one year builder’s warranty.
Learn more about Tulsa-based home construction experts from Perry Hood Properties today.