The main reason people decide to rent property must be to have another way to earn income due to retirement. In fact, this can be a key component of your retirement income diversification strategy. If you’re really considering investing in rental property, experts say low home prices coupled with low interest rates make this the right time in years to become a real estate investor. Investing in rental properties offers a great diversification of income streams for retirement. Before you start looking to invest, it is crucial to keep the following tips in mind:

1. Shop for a suitable location. If by chance you invest in a property with the dream of renting it abroad, the location is important. Homes in high-rent or densely populated areas are ideal; stay out of rural areas if there are fewer people besides a small group of potential renters.

2. Never, under any circumstances, invest in a 1-bedroom apartment. Also, look for homes with multiple bedrooms and bathrooms in neighborhoods that have a low crime rate.

3. Have capital placed. Talk to potential lenders or perhaps just a financial planner about whether you have enough assets to handle the good and bad investing might be. If you have plans to rent through a property, expect to pay the mortgage whenever there is a vacancy.

4. Hire a solid property management company to handle day-to-day rental matters and an accountant who understands the tax ramifications of investing. Management is a very important and competitive business, do your homework, shop around and don’t cut corners when hiring.

5. Buy at the right price. Run your numbers and make sure they work. A good deal now could help you make a profit if you eventually sell. Being an investor, you could keep making low offers and wait for the deal you want, but great deals usually sell out, so you really need to be able to move quickly once your target is in sight. In today’s market it is very easy to do.

6. Always do an inspection. The last thing you want to happen is discovering hidden or unrevealed flaws after the fact. An excellent value for money, a licensed home inspector can help identify potential safety and maintenance issues and even provide estimates to correct them.

7. Low maintenance properties. Avoid old houses that need a lot of repairs. Always prefer rental properties that are built with materials and fixtures that require less maintenance. Low maintenance means fewer headaches and more profit.