Tag: neighborhood

Top Neighborhood Features of a Profitable Investment Property

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If you’re considering purchasing your next investment property for your portfolio, you’re probably wondering how to decide which Greater Austin neighborhood it should be in. There are many factors to consider, but which factors should you focus on to ensure your property is profitable? 

Neighborhood & Amenities

One of the main factors is researching the neighborhood and its proximity to amenities. You want to ensure the neighborhood is located in a low-crime area with affordable taxes and a good school district. Living near schools, parks, restaurants, and shopping will attract more renters overall. However, if the neighborhood is near a university, this could be a positive for some, but also a negative. This is because students will dominate your pool of potential tenants, which could make it challenging to fill vacancies when summer rolls around.

High Listings & Vacancies

If the neighborhood you are looking to purchase an investment property in has a high number of listings and vacancies, this could signal a declining neighborhood. Not only does it make it difficult to get tenants, but you may have to lower your rent prices to fill your vacancies. Low-vacancy neighborhoods are more popular for renters and are harder to get into, which justifies higher rent prices. 

Average Rent Prices

Speaking of rent prices, make sure to do your research on the area to stay in line with your competition. Renters are usually more inclined to go with the lower rent price if it’s in an attractive neighborhood. Try to gauge where the neighborhood will be in the next five years to ensure the money you’re bringing in from rent is enough for all the upkeep of your mortgage, taxes, and other expenses.

Financial Stability

Look for neighborhoods with stable economic conditions, low unemployment, and low crime rates, as these areas generally have high cash-on-cash returns. Neighborhoods near large businesses with growing job opportunities tend to attract more tenants and are a good sign that the area is growing and stable.

In addition to these factors, there are plenty of others to consider before you write an offer for your next Greater Austin area investment property. If you have any questions or need recommendations, reach out to us! We are always here to help.

The Importance of Marketing Your Rental’s Walkability Factor

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“Walkability” refers to a property’s proximity to neighborhood and community amenities like pathways and sidewalks, trails, parks, schools, restaurants, and even retail stores. Because a location within walking distance to places of interest is desirable, marketing this vital factor to potential tenants may give you an advantage over the competition.

Why Is Walkability Important?

1) Convenience. If amenities are nearby, tenants don’t have far to go to enjoy an outing at the park or a Friday happy hour, and it cuts down on wasted time spent in traffic.

2) Budget Savings. Reduced trips to the gas station and wear-and-tear on cars equal more money in the bank.

3) Sustainability. With more focus on protecting the environment, minimizing pollutants is a high priority for many young people.

4) Improved Health. A walkable neighborhood translates into an easy way for health-conscious tenants to add exercise to their daily routine.

5) Closer-Knit Neighborhoods. Walkability naturally encourages interaction (with an homage to safe social distancing practices) and a sense of community where friendships are developed and a sense of belonging prevails.

How Can You Market Your Rental Property’s Walkability?

Consider adding your rental’s Walk Score when listing it for rent. Walk Score’s online tool measures the distance of places of interest to your property. Proximity to things like libraries, schools, parks, and shopping centers are factored into your rentals Walk Score. The higher the score, the more walkable the neighborhood.

Walk Score highlights helpful information about nearby attractions that aids in promoting other desirable features of your rental’s location. Supporting research from Walk Score demonstrates that a higher score often corresponds to higher housing prices, which is good news in optimizing your rent and rental income.

If your Walk Score is not high enough to list, don’t fret. Instead, point out any places of interest (such as community features like a pool, splash pad, or hiking trails) or businesses (like grocery or convenience stores) that are within walking distance of your rental property. Tenants will still find a nearby park or a short trip for groceries as advantageous.

As a landlord, it’s essential to highlight the many desirable features of your rental property, and favorable walkability may have the muster to push your listing to the top of a potential tenant’s list.

Photo by Rachel Woock on Unsplash