Pros/Cons of owning semi-rural rental property? (apartments, tenant, renters)
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I've been looking for land with utilities available to eventually build on and occasionally I find some that have small houses or trailer homes. All other things being equal (in good shape, nice area, etc.) what are the pros and cons of renting out a home that's farther out from the city than most apartments or single/multi-family homes?
I imagine that it can take longer to find new renters since it would be less convenient to get to, but perhaps it would attract older renters that would stay longer than young folks?
One big downside I can see is rural land is almost certain to have a septic system and renters are probably less likely to be careful about not abusing it than an owner, but short of them pouring chemicals down the drain to kill the field I would think that's more of a maintenance headache than something that would cause permanent damage.
I imagine it would be more effort to keep an eye on things as well, although out of town landlords are common so it wouldn't be that crazy.
If it's a property where the tenants can have horses, I can tell you that those are the kinds of properties that I'm constantly having people (both clients and friends) asking me if I can find and they are almost impossible to find, so if you marketed it properly and in the right locations (all breed horse publications, for example, and putting the word out at any nearby riding stables), you could likely keep it leased.
If it's just a house in the country, the pool of tenants will be smaller, but there. Same thing - there are usually very few rentals in very small towns and there's always someone looking for one.
I lived in a small town in the mountains of WA state, and the rental market there is actually fierce. About the only employer is the US Forest Service, but there are hardly any rentals. So, you'd have absolutely no trouble in a place like that.
If you lived far away, that can be a pain. If you could find a local handyman, that would work. Handle the tenant issues yourself, mainly over the phone, and email, but if you had someone you or the tenant could call to deal with maintenance issues, you should be fine.
Even though I'm a PM, I would be really reluctant to hire one. I helped my daughter find one to manage her rental that's out of town, and it was a very expensive nightmare. We should have just had me find a tenant and negotiate the contract, then find a local handyman to deal with most issues. A PM will nickel and dime you to death.
I wouldn't necessarily think the renters would be older in a semi-rural area.
Rental rates maybe lower.
My biggest concern would be finding good, trustworthy renters. I know meth production is a problem everywhere, but it's a particular problem in more rural areas. That would be a concern for me.
Second the "rent to people with horses". Put horse safe fencing on the property and be sure to buy insurance that covers horses.
There is a substantial demand for rentals where horses are OK and that do not cost multiple thousands for rent. Many horse properties are fancy big houses with fancy big barns that many tenants cannot afford.
However, it can not be too far out of town. Tenants have to work and they need to buy gas to get to work. If it is too much mileage, they can't afford it.
Note: do not allow goats or sheep. They will kill every tree on your property.
Definitely a poor choice for rental property and was not bought as such...
Bought it because I love the property and see nothing but upside potential.
Rent it because it is not the kind of property that can sit vacant...
Have ideal tenants right now... a retired couple that really love living there.
If something comes up they will let me know and we go from there.
I do have a property manager simply because of distance and they did find this couple.
Not sure what the future holds.... would like to live there someday... the reality is it would be a radical change and require deleveraging other investments to make a clean break.
Some real obstacles that ruled out a lot of tenants is no cable or DSL as well as TV or Cell service...
Only option other than a landline is Sat which can get pricey.
On septic and well which also reqires someone with common sense to avoid problems too.
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