Have you heard of one of the latest real estate trends? A studio apartment for rent has been the way to go!
You might be thinking: What on earth is a studio apartment for rent? All a studio apartment is an apartment with a main room and a bathroom and a kitchen. Sounds simple, right? These simple apartments have caught the interest of real estate investors and tenants alike. These real estate properties may sound simple in nature, but their rental income and overall profits are far from basic.
For real estate investors and home buyers, studio apartments are a dream come true. They are not too expensive and at the same time they are great money makers. Obviously though, the success of a studio apartment for rent relies on certain features, just as the success of a single-family home is due to some features. So, what are these features that make studios, as they’re nicknamed, profitable? You’ve come to the right place!
Perhaps the most important feature of an investment property for an average tenant is its price. A very close runner-up feature is location, but tenants might sacrifice location for a better rental price.
The price of a studio apartment is vital to its success. A studio apartment for rent is generally not too expensive, so its rent price should not be too expensive either. Keep in mind that a studio’s size is smaller than a typical investment property, so its price is expected to be lower with the less square footage. For an accurate assessment of the studio’s rent price, see an appraiser.
The importance of the price of a studio makes more sense as you begin to analyze its most common tenants. A lot of its tenants are college students, early graduates entering the workforce, and workers. For students and early graduates especially, rent is extremely crucial in their budget. To secure these tenants over the long term, offer them a fair yet profitable rent. This will serve them well for living and serve you well as rental income and positive cash flow.
Location, location, and location, right? Of course, of course, location is crucial to the success of a studio apartment for rent, let alone any income property. Studios are pretty much only found in cities. This is why studios’ typical tenants are, as previously mentioned, students and workers. Generally speaking, have the studio apartment for rent in a good part of the city. Obviously, the property needs to be in a safe neighborhood and area. And, if you’re targeting college students, make sure the property is near colleges and universities. This will get college students flock towards your property.
If you’re interested in targeting workers, have the property near common work areas. You could attempt to buy a studio apartment for rent in out-of-state cities with up-and-coming job markets. Also try to have a property near public transportation, convenience stores, hospitals, and other facilities. This applies to whatever type of tenant you are targeting.
Location and price really matter in real estate, to both tenants and landlords. These are significant features that you must focus on, especially since they cannot be changed (or are difficult to do so, with price).
This point adds on to the previous one, but it still stands strong. Studio apartments aren’t just great ideas as long-term rentals, they can work just as well with short-term leases. It doesn’t take but a Google search to get millions of results of Airbnb and studio apartments.
Since short-term rentals and studio apartments are such a good combo, something must be the reason, right? One of those reasons is tourist attractions. Studio apartments are often placed in the heart of a lively city, allowing guests to go out and explore the city. For this reason, try to have a studio apartment near tourist destinations within a city.
Just like with long-term tenants, consider having a studio apartment for rent near convenience stores, public transportation, and other facilities.
A studio apartment for rent is not meant to have that much space. Because of the lack of space, try to have appropriate convenient furniture in the apartment. Make sure there is enough furniture suitable for any living area. But, make sure the furniture is placed in such a way that movement is not blocked and that the property runs smoothly.
Consider having furniture that has more than one purpose. For example, wall-beds-and-tables and bed sofa combos are great touches to a studio apartment. Most tenants prefer a furnished property, so if you plan on furnishing your studio apartment for rent, follow these tips.
The most noticeable feature of a studio apartment for rent is its smaller size and lack of space. Make sure there is as much space as the property allows there to be. For example, don’t have any unnecessary walls hanging around. Also, don’t clog up the remaining space with heavy and big furniture, as previously mentioned. Tenants are attracted to studios for their small space, which means less room to clean and a likely lower rent, as a result of the smaller square footage.
A studio apartment for rent is a type of investment property you will be hearing about for a long time. With relatively low property prices and positive cash flow, studios are becoming a trend many investors are digging. Before you hop on the bandwagon, be sure to know how to keep your studio profitable. Make sure it’s in a great location. If you’re trying to target vacationers, make sure the area is a tourist hotspot. If you’re targeting students and workers, make sure the college area and job market are attractive. Find out what’s its fair rent price. Within the property, install appropriate furniture to keep the space well.
To start looking for the best investment property, you can begin your trial with Mashvisor’s property search.