Real estate amenities can affect your ability to make money with rental properties. This is because real estate amenities have a significant influence on occupancy rate, rental income, and growth potential.
When searching for residential investment property in the market, it is important to remember that you need to consider not only the quality of the investment property but also the quality of the neighborhood. The neighborhood should always come first since it is easier to change the property than to change the neighborhood.
Attracting your tenants should be the number one thing to focus on when selecting a residential investment property. Choosing an investment property that is in close proximity to planned or current social amenities will be a huge draw for potential renters. But what neighborhood amenities will your target renters need? Not all neighborhoods are the same. Moreover, no neighborhood can be considered perfect since not all areas can be a perfect fit for everyone. Everyone has their own unique needs.
However, there are some amenities that are common to all great neighborhoods. Here are 6 neighborhood amenities essential for a successful residential investment property.
1. Educational Facilities
One of the top neighborhood amenities to consider when choosing a residential investment property is educational facilities. Education is an important part of a child’s upbringing. Therefore, families with school-age children will be inclined to go for rental properties that are in close proximity to schools. If you are dealing with single-family rentals, you should look into the quality of the educational facilities in the neighborhood. Researching the available schools in the neighborhood will be a significant variable which can increase your rental rate and significantly influence the overall appreciation of your residential investment property.
Rental properties that are close to universities are ideal for students who will need a place to live as they study at the university. You can learn more about this type of investment location by reading College Towns: The Best Places to Buy a Rental Property.
Regardless of how good the property is, your investment property value might be affected if educational facilities are non-existent or are of poor quality. Be sure not to overlook this aspect depending on your desired tenant.
2. Public Transportation
People often need to commute from place to place on a daily basis. Easy options for moving in, out, and around an area are important to many tenants. From commuting students to employees who want to move from home to work, public transit is an important upgrade to any neighborhood.
Moreover, as more people are beginning to embrace sustainable lifestyles, the demand for proximate public transport is also rising. This is because more people are abandoning their private cars to take trains and buses in order to save money and decrease environmental pollution. In fact, in 2017, Americans took 10.1 billion trips on public transportation! Even more interesting, 45% of Americans have no access to public transportation.
Therefore, public transportation that is easy to access is a big plus for a residential real estate investment. A residential investment property that has access to reliable and fast public transportation will attract more tenants than one which lacks them. For instance, a well-serviced bus stop or nearby train station will enable tenants to easily move from one area to another.
3. Shops and Restaurants
Shops and restaurants are also among the important neighborhood amenities you need to consider when investing in residential property. Having restaurants, shops, and markets near a residential property makes it easier for people to acquire goods and services quickly and in a more affordable manner. So, tenants are often interested in living in these kinds of locations which, in turn, drives demand for a rental property.
Apart from the goods and services they offer, proximity to shops and restaurants can be a sign that the neighborhood will grow in value in the future. An area with recognizable brand names like Starbucks and McDonald’s shows that large firms have scrutinized the location and expect success.
With more and more people getting conscious about health and fitness, a gym is nowadays a standard requirement for a modern residential investment property. And in a time-constrained world, renters will find a gym within or close to the premises very useful. Buying a residential investment property that is close to a state-of-the-art gym will increase the number of potential tenants.
5. Entertainment and Leisure Facilities
Is the residential investment property near movie theaters, clubhouses, bars, museums, parks, sports grounds, swimming pools, or playgrounds? Entertainment facilities make a neighborhood come alive, especially for young people. Generally, people often need to take a break from their busy schedules to relax and have fun with their family and friends. Such entertainment facilities are draw-cards for tenants and also help to build the community spirit.
6. Healthcare Facilities
Having access to a hospital or dispensary is key for any residential investment property. Access to medical care is important for all residents, especially for children and retirees. Tenants need to know that they can access medical care quickly in case of an emergency. Some tenants who are sick may need regular treatment and, therefore, consider the proximity of healthcare facilities when selecting a rental house.
Residential investment property is all about your target tenant. You need to step into their shoes and envision what neighborhood amenities are important for them and then ensure they are covered.
Before committing to any residential investment property, be sure to check your potential location for neighborhood amenities such as schools, healthcare facilities, entertainment facilities, and public transportation. While looking for where to invest in real estate, you need to keep in mind that the more the neighborhood amenities, the higher the cost of the property. However, you’ll be able to charge more for rent!
Because the price can be higher in these areas, residential real estate investors need to make sure the return on investment is high. Use Mashvisor’s heatmap analysis and neighborhood analysis to find the best places to buy rental property.
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.