When it comes to selecting an investment property, there are a few issues that every landlord must take into account. No matter how wonderful a property is or how eager you are to invest, never make a property investment without carefully evaluating the following items on your property investment checklist.

1. Calculate your profitability.
Although determining the likely profitability of an investment property may seem like a given, you might be surprised how many investors find themselves in a losing situation simply because they fail to do the math. Before buying an investment property at any price point, be sure you carefully determine how much rental income you are likely to generate on an annual basis. Weigh this against not only your mortgage and property taxes, but also all of the other costs that are likely to occur over the course of a year, such as advertising vacancies and doing general repairs and maintenance.

When calculating these costs, be conservative when estimating income and err towards over-estimating your outgoing expenses. You want to make sure you have enough wiggle room in your profit margins to afford your investment property payments no matter what unforeseen events may unfold in a given year.

About.com’s real estate business page offers some great calculation tools that will help you calculate your risk based on several different variables.

2. Get inside renters’ minds.
Sure, you’re the one who’s purchasing the investment property but never forget that you are purchasing it for the purpose of renting it out to tenants. Which means that while you obviously have to make a pragmatic investment decision, you also have to think like a renter. Take a long hard look at exactly what sort of properties seem to be the most desirable in your area. Evaluate things like number of bedrooms, location, square footage, and other amenities. Knowing what renters want ahead of time helps guarantee that you won’t struggle to fill vacancies or be forced to settle for less desirable tenants later down the line.

3. Think long-term.
Will this property still be good a few years down the line? Remember, when it comes to investments, you’re not only investing in your financial well-being—you’re also investing in your future. Which is why it’s so important to take a good, hard look at long-term trends in areas you are considering. Look at city and county records to see how the neighborhood you’re looking at buying into is trending. Have properties been increasing or decreasing in value over the past five or ten years? How about crime rates? Has the demographic remained stable over the past decade or has it evolved (for instance, are residents generally shifting from families to young, single occupants)?

While no one can predict the future, much can be learned from the past. Make sure that you know exactly what direction the neighborhood you’re thinking about buying is headed.

Checking these few items off your Property Investment Checklist can make all the difference between a good investment and a bad one.

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We’ve all heard it before (including in the previous blog post): Location, location, location. The more you know about a neighborhood, the better you can feel about your real estate investments and properties. Use the following links to hep organize your location search strategies.

• David Cowgill begins 5 Steps In Helping Choose an Investment Property Location with those three famous words: Location, location, location.
• Learn what residents are saying about local neighborhoods.  RentWiki.com is a user-generated service that provides social info about neighborhoods.
• Homebuying tips can also be applied to investment properties. About.com explains what homebuyers should look for in a location when searching for a new home.
• Learn more about an area’s demographics by searching the U.S. Census Bureas’ website for data.
• Test the public transportation in an area with Google Transit. Map the best routes from prospective investment properties to area landmarks.

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Chances are landscaping falls pretty low down on most property managers’ list of things to do. And for good reason. Maintaining intricate landscaping is not only time-consuming, but it also tacks yet another expense onto your budget. Despite these very good reasons for not moving landscaping to number one on your priority list, there are also some great reasons why all property managers should consider putting forth the effort when it comes to landscaping.

1. Property Value
   Even if selling your property seems like a far-off (or even inconceivable) idea, bolstering its aesthetic appeal increases value. And every good business professional wants to make sure that that her assets command the best market value possible. Planting trees is a particularly sure-fire way to increase the value of your property—and they’re relatively low-maintenance to boot. According to About.com’s forestry page, “Trees can increase the property value of your home by 15 percent or more.”
2. Appeal to Renters
   It is currently a renter’s market in many areas of the country. Now more than ever, it’s the time to make sure that your property stands out from the rest. While it’s true that the chances of a potential tenant renting from you solely based on your property’s lush foliage are slim, someone choosing between otherwise relatively equal units will likely go for the one with visual appeal. Well-maintained landscaping sends renters the message that you care for your property and want to keep it looking as good as possible.
3. Cut Energy Costs
   That’s right, landscaping can actually save you money. Again, particularly in the case of trees, you may well cut costs in the long run. Not only will strategically planted trees shade your property in the summer, but they will also cut down on heating costs in the winter by shielding your property from chilly winds. Still not convinced that trees make that big of a difference? According to About.com, “Studies have shown that parts of cities without cooling shade from trees can literally be ‘heat islands,’ with temperatures as much as 12 degrees Fahrenheit higher than surrounding areas.”

As you can see, there really are plenty of reasons to invest a little bit of time and money into landscaping your property. But unless you have a green thumb, you’ll also want to keep it as easily maintainable as possible. You’re much better to have a simple, neat-looking landscape than an extravagant one that runs the risk of becoming unruly and overgrown or—even worse—ends up taking a toll on your bottom line with exorbitant gardening fees. These easy tips will help you create a pleasant landscape without breaking the bank … or your back.

• Install an irrigation system. Yes, you’re making an investment up-front but ultimately you’ll have a more self-sustaining landscape, which will save you time and money down the road. (Tip: Make sure you have a secondary meter so that your tenants aren’t absorbing your water fees.)
• Concentrate on grass and trees. As we’ve already discussed, there is a strong argument for planting strategically placed trees on your property. A few trees and some maintained grass will add aesthetic appeal and both are easily maintained—especially with that irrigation system mentioned above.
• Plan ahead. If you’re going to bring in a professional landscaper to help plot out your design, hire him during the winter when demand—and, thus, costs—are lower than in the prime-time spring season.
• Plant perennials. If you do want to incorporate some plants in your landscaping, go for perennials that will last more than one season. Check out this guide to find low-maintenance perennials that will thrive in your specific climate.

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