Choosing to invest in a rental property is a big decision and one that requires extensive research. Real Property Management Select has more than 30 years of experience in the property management industry and has managed every type of property including single family homes, condos, multi family apartment complexes, and duplexes. If you are starting your real estate investment portfolio for the first time, Select can assist in leading you in the right direction to find a property that best suits your goals. Whichever property you buy today will impact how you need to manage it tomorrow. Make a smart decision now that will increase your success as a rental property owner.
Picking the Right Location
Not all markets are created equal. When searching for a rental property, look at specific neighborhoods. Targeted neighborhoods should include those with low vacancy rates, high rents, and high appreciation. Real estate agents should have extensive knowledge on this subject and can guide buyers to the right neighborhood. Another way to get familiar with vacancy rates and high rent rates is to talk to the neighbors when viewing prospective properties or Elk Grove property management companies like Select. Tracking and analyzing vacancy rates is an important part of a property management company’s data and most should know an average vacancy rate off the top of their head. The US Census Bureau has vacancy rate information as well, though it is a more general average and does not specify neighborhoods. The Bureau reported that in Quarter 1 of 2019, the United States vacancy rate was at 7.0.
Pick a rental property in a location that is close to schools, transit, shopping, entertainment, and other amenities. People like to live near places that they will attend often and that are convenient. When picking a property near a school, research the school and determine if it is in a desirable school district with good reviews. Talking with neighbors or a realtor can be beneficial in finding out this information. Public transportation that is easily accessible can help draw tenants towards a rental property in Elk Grove. Property management experts know that renters who commute via bus or train will enjoy having a stop near their house for a quick and easy commute. Quick access to grocery shopping, clothes shopping and dining are priorities to most people when they choose a rental property. Nobody wants to trek twenty minutes to the grocery store when they forgot milk or an ingredient for dinner. Even worse, when a member of a family falls ill and they need to run to the grocery store for medicine, they need one within five minutes. Having a movie theater and nearby restaurants that provide residents with delicious and entertaining options will draw and keep tenants living in a house long term.
Homeowners Association Rules
If you plan to buy a rental property that is part of an HOA, make sure that you know and study the rules before renting it out in Elk Grove. Property management firms know that some HOAs have regulations regarding rental properties and others simply do not allow rentals or will shut them down if terms and conditions are not met. HOAs appeal to many home buyers because the rules generally help to maintain high property values. The concern that many HOAs see with rentals is that they draw people into the neighborhood who would not normally live there. While most tenants make great stewards over rental properties, there is a suspicion that renters may not care for the property in the same way that a homeowner would. Some HOAs can limit the number of residences within a neighborhood that can be a rental property while others may put a requirement on the number of years that a homeowner must occupy the property first, before transitioning it into a rental property.
Choosing the Right Property
Assuming that investors have narrowed down neighborhoods and taking into consideration HOAs, location, and amenities, it is now time to determine the property specifics that will provide investors with long term tenants who pay rent on time and care for the property as if it were their own. Elk Grove property management company, Select, has been in the industry and managed every type of property possible. The experts at Select know that different property types provide investors with different outcomes. The type of property an investor chooses to purchase should depend on his or her financial strategy.
- Data shows that during the last fifteen years, single family rentals delivered high returns on investment through appreciation and rental income. For multiple years in a row, rent rates have increased by three percent each month and in January 2019 alone, they jumped 3.2%.
- Select can back up the data provided above and confirms that single family rentals are in high demand and generating more income than ever before for investors.
- Single family residences can support a family lifestyle. Renting to a family is known to provide property owners with long term tenancy. Look for a property that would appeal to your desired tenant. This would include a property that is a minimum of three bedrooms and has at least two bathrooms. A fenced yard is also a desirable characteristic for prospective families looking for a single family rental.
- Elk Grove property management experts recommend that investors purchase a home that is less than 50 years old. This will help to keep maintenance costs low. The older the property, the more expensive the maintenance. Another benefit to buying a newer home is that you are less likely to get a quirky layout. The style starting from about 1990 to the present is to have open layouts that provide occupants with a Great Room. A Great Room has the ability to combine multiple rooms that serve different functions into a large gathering area. They generally include the kitchen, living room, and dining room. This layout allows families and friends to interact with one another, while doing different tasks.
- Elk Grove property managers advise investors to avoid busy streets that cause excess noise to the tenants or a safety concern as children play in the front yard or ride bikes on the street.
Proven Leasing and Marketing Strategies
Successful leasing and marketing starts back at your buying decision. Target the right audience with advertisements. Market rental properties on local classifieds, Craigslist, Zillow, Hotpads, Oodle, or Trulia, just to name a few. Place a For Rent sign in the front yard and draw attention to it by attaching some helium-filled balloons. This is a proven successful strategy as neighbors will alert friends and family, so that they can live near one another.
How the Experts at Elk Grove Property Management Team, Select Can Help You
Whether you own a single family home, multi family complex, duplex, condo, or manufactured home, Select is ready to help you maximize your return on investment and reach your financial goals. We have managed all types of properties and have experts standing by who can provide investors with high quality tenants, top rental rates, low maintenance costs, and low vacancy rates. Call us today.