It’s important to understand that those who own their houses usually have “pride of ownership.” Those who rent obviously do not.

This means that where owners might put in new front yards or repaint their homes, tenants are most likely simply to let it go and ask the investor/owner to do it.

There’s nothing wrong with this. You can’t really expect tenants to take care of a property they don’t own. After all, it’s the owner, not the tenant, who reaps the rewards when the home is sold (not to mention tax advantages).

Hence, it’s the owner who normally has the burden of maintenance, repairs, and improvements. Unfortunately, many investors are unwilling or do not have the funds to properly maintain and improve their investment properties. The results can be weed-strewn front yards, dilapidated buildings, chipped and weathered paint, and so on.

In many neighborhoods, you can tell the investment properties from the owner-occupied ones simply by walking by and seeing which look good and which look bad. Too many rundown investment properties can drag a neighborhood down. It can adversely affect prices, make it more difficult to find tenants, and result in long delays when selling.

Therefore, before buying in any neighborhood, you should walk it. Walk not only the block on which the subject home is located, but all the nearby streets as well. You’ll know what you’re looking for when you see it. It’s the dilapidated rundown house that needs work. No, it’s not necessarily an investor’s house, but there’s a good chance it is. If there are more than one or two in the immediate area, reconsider your purchase.

Remember, you don’t own property in a vacuum, and buyers and tenants make the selection based not only on a house, but on a neighborhood.