When a real estate investor gets an opportunity to buy a rental property in rural areas, it looks like a tempting offer. Buying rural properties has many advantages, but some problems are also associated. Urban investors are usually unaware of these issues and sometimes feel awful after buying a rural property. If you already know the problems associated with such investment, you will be better equipped to deal with them. Here is our informative guide for people who want to invest in rural properties.
Competition and turnover rate
Like any other property, the rural property also has advantages and disadvantages. The biggest attraction for rural properties is the price. In rural areas, the property price is less than in urban areas. You can be a landlord in a rural location if you cannot afford to buy a house in the city. Another advantage is low competition. As the population is low, there are few property managers and owners; as a result, competition will be less.
On the other hand, as the population is low, the number of tenants is also less. Once a tenant leaves the house, it will be difficult to get another one. But if you have a good network and reputation, this problem can be solved without any trouble. Property agents can also help, and you can ask shopkeepers and local people to find a tenant for you.
Maintenance of Septic system
Urban landlords are not familiar with septic systems and their issues. There is a network of sewer systems in urban areas that collect wastewater from homes. Owners need to maintain plumbing inside their houses only. However, the sewer system is not like in cities in rural areas.
Houses in rural areas have an individual sewer system called a septic system. These systems are not connected with the sewer line, and the government does not take the responsibility to maintain them. Septic systems need regular maintenance; if they are not properly cleaned and maintained, the system will get blocked, leading to a series of problems. So before buying a rural property, you need to hire a professional who can check the condition of the septic system. He will check the present state of the system and will let you know if there are any problems.
Moreover, the tenants should be properly educated about the use and maintenance of the septic system. The system should be properly connected with all drainage outlets in the home, like toilets, kitchen and garden area. If the waste can biodegrade quickly, it can be added to the septic system. So, waste like paper towels can also be thrown in this system.
Care and maintenance of water well
Accessibility of water is also different in rural areas. If you are purchasing a first home in a rural area, you must know that the government manages the water supply in urban areas, but every house has its well in rural settings. So, you need to ensure whether there is a well or it produces a sufficient amount of water or not. Moreover, water must be suitable for consumption. If the well does not produce sufficient water, you may need another well to fulfill the needs. A professional can evaluate the pressure, quantity and quality of water. He will do certain tests to check if there is any contamination. Additionally, some chemical tests will reveal the concentration of iron, nitrates and other constituents. Other than that, you need to check the well license, which should be according to the regulation of the local management body.
Know the boundaries of your property
In cities, the boundaries of the houses are well defined, but in rural areas, this is not the case. It would help if you asked for the exact boundaries of your property before finalizing the deal. This is more important if you are buying a large piece of land. Sometimes boundaries can lead to serious issues with neighbors. Ask the seller about boundaries, and then a surveyor can help you to determine whether he is telling the truth or not. You should get complete information from all four sides.
We have limited outdoor space in urban areas, and maintenance is easier. However, in rural areas, it is difficult, particular if the size of your property is large. For instance, lawns need to be mowed every week in the summer season. This kind of maintenance is important from the esthetic point of view, but safety is also a concern. If the outdoor is not properly maintained, there is more wildfire risk.
If there are fruit trees, you need to maintain them properly to get healthy fruits. Trees need proper pruning at regular intervals. Moreover, depending on the fruiting time, you may need to spray them twice a year. Usually, trees are sprayed twice a year, before spring and before fall. When fruits are ready to pick, they should be picked immediately. If fruits are not picked in time, they start to rot and invite a lot of pets and become the cause of diseases.
It is another important aspect of rural life. It would help if you prepared yourself outdoor before the winter. For that, clear fallen trees and twigs and remove all things which snow can destroy. You can ask your tenants for help, as it is their responsibility too. It will be easier to clear snow once it starts falling if you are ready for winter. Moreover, you can also avoid the incidents of bursting pipes.
Buying a rural property looks very attractive as they are not very expensive. But some problems are involved with them, which are not associated with urban properties. So, it is very important to understand these issues before you take this step. It will help you check important things before you buy a property, and once you own it, you will know how to maintain it. A little information can save your money, and you can avoid many issues arising due to your ignorance. A rural property can be your dream investment if you get good tenants and take care of it properly.