{"id":99413,"date":"2020-09-18T04:30:00","date_gmt":"2020-09-18T04:30:00","guid":{"rendered":"https:\/\/www.zameen.com\/blog\/?p=99413"},"modified":"2020-09-17T10:39:32","modified_gmt":"2020-09-17T10:39:32","slug":"dos-donts-buying-second-home-rent","status":"publish","type":"post","link":"https:\/\/www.zameen.com\/blog\/dos-donts-buying-second-home-rent.html","title":{"rendered":"What to Consider Before Buying a Second Property for Rental Income?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>IN THIS POST:<br><\/strong>&#8211; <a href=\"#The-Dos\">The Dos<\/a><br>&#8211; <a href=\"#The-Don\u2019ts\">The Don\u2019ts<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As a real estate investor in Pakistan, you may be quite eager to expand your portfolio and buy a second property for rental income. However, there are a number of considerations that need to be kept in mind while buying a second home to rent. We\u2019ve covered a list of dos and don\u2019ts for buying a rental property that you should review before making the decision.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Dos and Don\u2019ts of Buying a Second Home to Rent<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Investing in a second property with the intention of renting it out is a great way to earn passive income that can be saved for retirement, or even reinvested into buying more rental properties to expand your portfolio as a landlord. However, there are some considerations for buying a second property for rental income that all investors should keep in mind as they venture into the world of rental real estate.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"The-Dos\">The Dos<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">If you have decided to buy a second home to rent, do:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Know the purpose behind the purchase<\/li><li>Research the market before you invest<\/li><li>Consider the home\u2019s resale value<\/li><li>Evaluate the property as a potential retirement home<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Below is a detailed explanation on all of the dos.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Know the Purpose Behind the Purchase<\/h4>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"640\" src=\"https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2020\/09\/D-1024x640.jpg\" alt=\"Buy a second home for rental income\" class=\"wp-image-99422\" srcset=\"https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2020\/09\/D-1024x640.jpg 1024w, https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2020\/09\/D-300x188.jpg 300w, https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2020\/09\/D-768x480.jpg 768w, https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2020\/09\/D-640x400.jpg 640w, https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2020\/09\/D-368x230.jpg 368w, https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2020\/09\/D.jpg 1440w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption>Always Know Why You Want to Invest in a New Property!<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Firstly, if you are investing your savings into buying a second home, know your reasons for buying a second property. Are you planning to rent out the second house? Do you plan to move into the second home and rent out the first?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Moreover, earning rental income comes as a bonus for any individual owning more than one property, but what\u2019s the purpose behind earning the extra money? Do you want to save it for your retirement? Is the goal to travel the world after saving a good amount? Are you planning to reinvest and build your rental real estate portfolio? Know why it\u2019s important before you make an investment so that you will have a clear focus while searching for the right property. Here are some of the different <a href=\"https:\/\/www.zameen.com\/blog\/types-rental-property-investment.html\" target=\"_blank\" rel=\"noreferrer noopener\">types of rental property investments you can make in Pakistan<\/a>.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Research the Market Before You Invest<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Never forget to conduct the necessary market research before investing in real estate. Certain features, such as easy access to transport routes, availability of good schools, proximity to commercial areas, and many more, will <a href=\"https:\/\/www.zameen.com\/blog\/top-features-attract-tenants-rental-property.html\" target=\"_blank\" rel=\"noreferrer noopener\">attract more tenants to a rental property<\/a>, so make sure that you are investing in the right house. Here\u2019s a complete guide on <a href=\"https:\/\/www.zameen.com\/blog\/rent-out-your-house.html\" target=\"_blank\" rel=\"noreferrer noopener\">how to rent out your house<\/a> once you\u2019ve bought it.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Consider the Home\u2019s Resale Value<\/h4>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"640\" src=\"https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2020\/09\/B-1024x640.jpg\" alt=\"Factors that affect property value\" class=\"wp-image-99423\" srcset=\"https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2020\/09\/B-1024x640.jpg 1024w, https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2020\/09\/B-300x188.jpg 300w, https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2020\/09\/B-768x480.jpg 768w, https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2020\/09\/B-640x400.jpg 640w, https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2020\/09\/B-368x230.jpg 368w, https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2020\/09\/B.jpg 1440w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption>Buy a Property That Will Always be in Demand!<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">While you may be investing in a second property with the intention of renting it today, you may choose to sell it tomorrow. This is why it is important to buy a property that offers great resale potential. The location of the house, the neighbourhood it\u2019s in, and the condition of the home, are just some of the factors that will influence your home\u2019s resale value, so keep them in mind, so that you invest in a house that benefits you today as a rental but can also earn you a profit upon resale in the future. Here how to <a href=\"https:\/\/www.zameen.com\/blog\/determine-home-resale-value.html\" target=\"_blank\" rel=\"noreferrer noopener\">determine the resale value for your home<\/a>.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Evaluate the Property as a Potential Retirement Home<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">The dos and don\u2019ts for buying a rental property include considering not just your present needs, but future requirements as well. If you plan to relocate eventually once your children have moved out, why not invest in a retirement property now, and set it up as a rental rather than searching for a home once you\u2019ve got an empty nest. Think about the future today when you have the health, time, and finances to invest in it so that you are all set for retirement when the time comes.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"The-Don\u2019ts\">The Don\u2019ts<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">When you buy a second home to rent, don\u2019t:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Forget that you\u2019ll become a landlord<\/li><li>Overlook the importance of location<\/li><li>Ignore the challenge of finding the right tenants<\/li><li>Disregard the maintenance cost for a second home<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Let\u2019s cover the don\u2019ts in detail below.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Forget That You\u2019ll Become a Landlord<\/h4>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"640\" src=\"https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2020\/09\/C-1024x640.jpg\" alt=\"Fulfill the role of a landlord\" class=\"wp-image-99421\" srcset=\"https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2020\/09\/C-1024x640.jpg 1024w, https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2020\/09\/C-300x188.jpg 300w, https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2020\/09\/C-768x480.jpg 768w, https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2020\/09\/C-640x400.jpg 640w, https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2020\/09\/C-368x230.jpg 368w, https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2020\/09\/C.jpg 1440w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption>Be a Landlord That Tenants Can Communicate With!<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Entering the rental real estate market means you have officially taken your first step to become a landlord. This role comes with its share of responsibilities and duties, and you need to be honest and approachable so that tenants will shortlist you when they are <a href=\"https:\/\/www.zameen.com\/blog\/find-good-landlord.html\" target=\"_blank\" rel=\"noreferrer noopener\">searching for a good landlord<\/a>. Moreover, you will also need to <a href=\"https:\/\/www.zameen.com\/blog\/checklist-preparing-house-rent.html\" target=\"_blank\" rel=\"noreferrer noopener\">prepare your house for potential tenants<\/a>, which includes performing timely maintenance both inside and outside the property to make it look attractive to new renters.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Overlook the Importance of Location<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">When you\u2019re investing in real estate, the location of the property is of utmost importance. Choose the right area for your investment, and you might have a list of buyers\/tenants to choose from. Buy in a shadier neighbourhood or a location that requires a long drive to get to the nearest commercial hub, and you\u2019ll have fewer people wanting to tour the rental unit. Here\u2019s <a href=\"https:\/\/www.zameen.com\/blog\/best-location-investment-property.html\" target=\"_blank\" rel=\"noreferrer noopener\">how to find the best location for a real estate investment<\/a>.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Ignore the Challenge of Finding the Right Tenants<\/h4>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"640\" src=\"https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2020\/09\/A-1024x640.jpg\" alt=\"Find the right tenant for your property\" class=\"wp-image-99420\" srcset=\"https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2020\/09\/A-1024x640.jpg 1024w, https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2020\/09\/A-300x188.jpg 300w, https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2020\/09\/A-768x480.jpg 768w, https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2020\/09\/A-640x400.jpg 640w, https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2020\/09\/A-368x230.jpg 368w, https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2020\/09\/A.jpg 1440w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption>Choose the Right Tenants or You&#8217;ll Regret It Later!<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">As someone who is now venturing out and testing the possibilities offered by investing in rental properties, you may be tempted to assume that finding the right tenant will be the least of your concerns. Think again!<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Sadly, <a href=\"https:\/\/www.zameen.com\/blog\/choose-best-tenant-your-rental-property.html\" target=\"_blank\" rel=\"noreferrer noopener\">choosing the best tenant for your rental property<\/a> is not an easy feat. There are a number of <a href=\"https:\/\/www.zameen.com\/blog\/essential-questions-ask-potential-tenant.html\" target=\"_blank\" rel=\"noreferrer noopener\">questions that you should ask your potential tenants<\/a> before you sign a contract with them. Renting out your home to unsuitable tenants may result in illegal occupation, unpaid rents, and forceful evictions \u2013 all of which is a landlord\u2019s worst nightmare!<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Disregard the Maintenance Cost for a Second Home<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Yes, your rental unit is earning you a certain amount of money every month, and yes, the upkeep may not be a regular cost, but you cannot deny the fact that as a landlord, you are responsible for maintaining the property and if something breaks down, you will have to make an expense to get it fixed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While the repair may be as small as replacing a fused bulb, it may be as big as a structural fault that went unnoticed when you bought the home. Thus, <a href=\"https:\/\/www.zameen.com\/blog\/diy-home-inspection-checklist.html\" target=\"_blank\" rel=\"noreferrer noopener\">inspect the house before you buy it<\/a> and make sure that you have enough savings left behind to take care of large-scale urgent repairs, should the need arise.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We\u2019ve covered all of the dos and don\u2019ts of buying a second home to rent above, so give due consideration to each of these factors as you search the market for the right property. Keep reading more property-related posts on <a href=\"https:\/\/www.zameen.com\/blog\/\" target=\"_blank\" rel=\"noreferrer noopener\">Zameen Blog<\/a>. We can also be reached at <a href=\"mailto:blog@zameen.com\" target=\"_blank\" rel=\"noreferrer noopener\">blog@zameen.com<\/a> if you want to send us your comments and suggestions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>IN THIS POST:&#8211; The Dos&#8211; The Don\u2019ts As a real estate investor in Pakistan, you may be quite eager to expand your portfolio and buy a second property for rental income. However, there are a number of considerations that need to be kept in mind while buying a second home to rent. We\u2019ve covered a list of dos and don\u2019ts for buying a rental property that you should review before making the decision. Dos and Don\u2019ts of Buying a Second Home to Rent Investing in a second property with the intention of renting it out is a great way to earn passive income that can be saved for retirement, or even reinvested into buying more rental properties to expand your portfolio as a landlord. However, there are some considerations for buying a second property for rental income that all investors should keep in mind as they venture into the world of rental real estate. The Dos If you have decided to buy a second home to rent, do: Know the purpose behind the purchase Research the market before you invest Consider the home\u2019s resale value Evaluate the property as a potential retirement home Below is a detailed explanation on all&hellip;<\/p>\n","protected":false},"author":71,"featured_media":99435,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[11051],"tags":[78090,60460,78089,78084,62332,78077,78087,78080,78079,78082,78085,78092,59996,78093,78081,30724,45726,16445,78088,78091,236,4293,702,78078,78086,78083,13427,13429,44508,78094],"persona":[32411,32428],"class_list":["post-99413","post","type-post","status-publish","format-standard","has-post-thumbnail","category-property","tag-build-your-rental-real-estate-portfolio","tag-buy-a-property","tag-buy-a-second-home-to-rent","tag-buy-a-second-property-for-rental-income","tag-buying-a-second-home","tag-buying-a-second-home-to-rent","tag-buying-a-second-property-for-rental-income","tag-considerations-for-buying-a-second-property","tag-dos-and-donts-for-buying-a-rental-property","tag-dos-and-donts-of-buying-a-second-home-to-rent","tag-earning-rental-income","tag-homes-resale-value","tag-invest-in-a-house","tag-invest-in-a-retirement-property","tag-investing-in-a-second-property","tag-investing-in-real-estate","tag-investing-in-rental-properties","tag-investing-your-savings","tag-move-into-the-second-home-and-rent-out-the-first","tag-owning-more-than-one-property","tag-property","tag-property-investment","tag-property-investment-tips","tag-real-estate-investor-in-pakistan","tag-reasons-for-buying-a-second-property","tag-rent-out-the-second-house","tag-rental-properties","tag-rental-real-estate","tag-rental-unit","tag-renting-out-your-home","persona-property-investment","persona-tips-and-tricks","cat-11051-id"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Do&#039;s &amp; Don\u2019ts of Buying a Second Home to Rent | Zameen Blog<\/title>\n<meta name=\"description\" content=\"Buying a second home to rent? 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