Managing rural investment properties
Buying a property in a rural location can often be a lot cheaper than metropolitan centres, making it a popular option for investors. However, renting out properties in rural areas with high levels of unemployment or only cyclical employment can be harder. Here are some tips to make sure your property is rented out as much as possible.
Use a local real estate agent to manage the property
Real estate rentals and property management in rural areas can be often aided by informal networks, such as knowing when a young person is looking to move out of home or a couple is splitting up and someone needs a new home. This means having an estate agent who is based in the town can be much more efficient than trying to self-manage from the city. Having property management set up also means you don't have to constantly be in the area to deal with the property.
Be flexible about leases
While it's traditional to rent out properties on 6- and 12-month leases, if you have bought a property in an area that has very cyclical employment, such as a farming community, you may find it easier to offer a flexible lease to capture some of these seasonal workers. As these workers won't likely have furnishings, you want to make sure that you have at least basic furnishings in the home, although you want to charge an extra bond for the furnishings.
It's also a good idea to be flexible about pets, as many people who like living in rural areas also have pets as part of their household.
Consider (very) short-term rentals
There are a variety of room-sharing and home-stay websites that offer people a chance to really live in the country that they are visiting. You may be able to attract some tourists who want to experience a true outback experience. It is important to get some attractive pictures to post on the website, as well as some descriptive listing text to help convince tourists to head off the beaten track to stay in your home. Your property manager may be able to help you manage the property for short term rentals as well, including handing out keys and organising cleaners after the guests have left.
In order to make the most of your investment property in a rural area and manage it effectively, it's a good idea to find a property manager. Their expertise and connections will help to maximise your returns from the property.
