As property managers in Tampa, we know one of the keys to a successful real estate purchase is the location. The success of a location is directly linked to the economic growth and stability in the area. To understand if you are looking in the right area for rental property, you have to answer some key questions about the current economic climate and expected growth coming to the area.
Here are six questions our property managers in Tampa recommend asking:
1. WHAT IS THE DEMAND FOR RENTAL PROPERTY IN THE AREA?
Are people renting in the area you are searching? This is one of the first questions you should ask when looking at locations for a rental property. Regardless of how good the price is, no market and no forecasted growth means you could be facing major lapses without tenants.
2. WHAT IS THE OVERALL HOUSING MARKET LIKE?
The housing market is a good indicator of the demand for living space and the income levels of people living or moving to the area. If housing prices are increasing at a steady rate or you see properties over list price, there is a good probability you are looking at a healthy, thriving rental market.
3. WHAT BIG INVESTMENTS ARE BEING MADE IN THE AREA?
Did a major corporation just purchase land to add a new location or store in the area? Most corporations put a lot of research and analysis in where they invest resources and grow their firm. Seeing a recognizable brand name purchasing land, means they predict growth and longevity.
4. ARE ADVANCEMENTS BEING MADE TO TRANSPORTATION AND ROADWAYS?
New and improved roadways, freeways, airports and other forms of transportation will drive up the demand of a location. Commuters and people who travel often care about the ease of transportation and it is often one of the main considerations for where to choose a rental home.
5. IS LOCAL LEADERSHIP INVESTING IN AREA GROWTH?
Are government officials, organizations, or prominent individuals investing in initiatives to enhance the area or make it attractive to companies that will provide new jobs to the people of the community? An area with a strong leadership foundation will flourish, and is another positive indicator of long-term success.
6. IS AVERAGE INCOME INCREASING?
If incomes in the area are above local, state, and national averages, people will be search for jobs in the area, and in turn, will look for rental property in the area. Higher incomes and greater demand also equates to higher rental rates, so positive income growth is a good sign of a great location.
Wise Property Management has provided property management in Tampa, FL since 1981 with a focus on the success of our clients.
Contact us at (813) 968-5665 to learn more about our property management services.