When thinking about investing in a rental property, most people will automatically turn to urban homes. There is a lot of untapped potential in rural settings as well, though this is often overlooked by investors. That small-town charm can be very enticing and the idea of friendly neighbors and a slower pace is appealing to many people.
The trick is knowing how to find rental homes in rural areas and evaluating whether they will be a promising investment for you. In this article, we’ll break down some ways to find rental homes in rural areas and weigh your options accordingly.
Seek the Help of Reliable Property Management
If you want to find your rural investment property efficiently, it may be best to seek the assistance of a licenced property management or real estate company. They will be able to present you with an assortment of options based on your desired location, budget and timeline.
Perhaps you are looking for immediate investment opportunities or are wondering how to find cheap rental homes. In these cases, a licenced team can help. They are knowledgeable about rural legislation and will be able to offer guidance and advice in navigating the purchasing and rental process.
Additionally, if you are looking to have someone manage the rental property for you, they would be able to take care of this. This would be an excellent option to explore if you do not want to search for the property yourself, or if you lack the knowledge to do so.
Or You Can DIY
Alternatively, you can take on the search yourself. This is often a great way to learn more about the specific properties, the community and pertinent legislation. It is highly recommended that you study your targeted rural area and become familiar with the housing market and local economy.
The internet is a great resource for finding this information. You can browse through the properties that are for sale to compare statistics and prices.
It is also a good idea to physically go visit your desired location. Take a drive through the streets, as you may find properties for sale that are not listed online. Or you can stop at the community center or grocery store, as bulletin boards are still often used by people in small towns to advertise.
It can also be a good idea to get to know the people in the town. There are usually a handful of ‘must-know’ individuals who are familiar with everything that is going on.
Insurance for Rental Properties
Many people wonder if you need home insurance for rental properties. The answer is YES — you’ll certainly want to have the proper insurance in place when operating a rental property.
There are a number of landlord policies available that will provide the coverage you need in this situation. This type of insurance often covers the building itself, as well as other structures on the property such as sheds or fences. Landlord insurance also typically provides liability coverage related to renting out the premises.
For example, if a tenant is hurt in the home and you as the landlord are found responsible, this policy may help cover any resulting medical expenses or legal fees. In Alberta, you can also require that your tenants have renter’s insurance to protect their personal belongings and offer them some liability protection.
Understand Yourself and Your Market
Even if you are an experienced investor and landlord, it’s important to remember that rural rental properties are still quite different from urban ones. There are certainly some advantages, but there is also a different assortment of risks. It is especially important to understand the ins and outs of rural investing and truly have a passion for it. This will result in a far greater return from your investment property.
Contact Us Today
If you live in the Calgary area and are looking to acquire a new rural rental property (or require assistance with managing an existing one), our team at Emerald Management & Realty Ltd. can help. We are a family-owned and operated business with over 40 years of experience in the property management industry. We look forward to connecting with you soon.