The Importance of Rental
Property Location

For real estate investors, the importance of rental property location cannot be underestimated. It affects just about every aspect of owning and operating investment property. It's at the top of the "real estate totem pole", and here's why…

Quality of Tenants

Rental properties located in stable, working class neighborhoods can certainly attract better quality tenants than properties located in deteriorated areas. For the most part, the supply of good quality tenants will only choose to live in properties located in stable, decent areas. And, the financial success of a rental property ultimately depends on good tenants paying their rent and maintaining the property.

Price Appreciation

You've heard the phrase during election times that "all politics are local"? Well, for real estate, price appreciation is also local. In markets where real estate prices may be appreciating as a whole, if your property is located in an undesirable area, you may be left out from fully participating in that price appreciation. And even worse, your property may actually be depreciating in value. Locally depressed areas often get worse as time goes by, causing downward pressure on property values.

Condition of Surrounding Properties

As mentioned above, stable neighborhoods attract a greater supply of good tenants. This creates a chain reaction - the property owners in those areas will experience greater financial success, and this results in better maintained properties which improves the attractiveness of the neighborhood. The end result is upward pressure on property values.

To the contrary, if deteriorating properties surround yours, then the value of your property will suffer as a direct result. Your property will certainly "catch the flu" from all the surrounding sick properties.

For more in-depth information on rental property location, please visit The Landlord's Library book collection. It's the ultimate, one-stop source for practical, in-depth information on the entire subject of residential landlording.

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