What Should an Investor Look for When Purchasing a Single-Family Home?
As a property manager, I’ve had owners ask me this question for years. Growing up in Spokane, one side of my family was full of builders, so I was immersed in construction from an early age. I constantly heard discussions about how homes should be built and why. Later, I operated a moving company for over 20 years, entering hundreds of homes across Spokane County and witnessing how construction trends evolved. Now, after another seven years in real estate and property management, I’ve learned exactly what tenants look for in a rental and how much they’re willing to pay. More importantly, I’ve paid close attention to what keeps tenants in a home long-term, minimizing costly vacancies.
Many investors are drawn to flips and refurbished properties because they are initially affordable and visually appealing. These homes often lease quickly, but tenants frequently do not stay beyond a 12-month lease because they realize the home lacks essential features. Here are some of the most common reasons tenants choose not to renew:
Poor neighborhood or school district
Lack of a sizable garage to protect vehicles
Insufficient storage and closet space
Outdated HVAC system leading to high heating/cooling costs
No irrigation system, making landscaping maintenance difficult
These issues may take a full year for tenants to recognize, but they often become deal-breakers. One major oversight investors make is failing to prioritize a garage. Consider a rental property priced at $2,200 per month—tenants likely own at least one vehicle worth over $35,000. Leaving it exposed to the elements or potential theft in certain neighborhoods becomes a significant concern. This is also a key reason why tenants in multiplexes often move out—lack of secure parking.
What Makes a Good Investment?
In my experience, the best rental properties are single-family homes built in the 1990s and early 2000s. These homes often feature real wood cabinets, solid surface countertops, and quality finishes for their time period. When maintained by an original or second owner with pride, they offer tenants exactly what they need. While the finishes may be slightly dated, the quality of these homes allows them to generate strong rental income that can cover the mortgage while appreciating in value over time.
Instead of spending large sums updating a property to the latest trends, investors should focus on acquiring homes in desirable neighborhoods with long-term appeal. Let future buyers handle the expensive renovations when it’s time to sell. That said, regular maintenance and strategic upgrades are essential to keeping tenants happy and ensuring the property remains competitive in the rental market.
Many investors overlook these homes simply because they lack the ultra-modern finishes found in today’s new apartments or townhouses. However, I have found that tenants appreciate and take better care of well-built homes in good neighborhoods with strong school districts. This stability encourages lease renewals and reduces vacancy risk.
I could talk for hours about smart real estate investments, but I prefer having these discussions in person to understand each client’s unique goals and perspectives. If this resonates with you and you’re considering investing in a rental property, reach out to Prophet Property Management. I’d love to help you make the right investment decision.
Thank you for reading!
