Seattle’s housing market is hot, and Seattle homes for rent are in demand. What does this mean for your investments? When you’re choosing investment properties in the Seattle area, you will need to work in a rapidly-moving market. You’ll need to come into your real estate transactions with thorough preparation in order to keep up in this evolving market.
Get Familiar With the Local Neighborhood
Even if you live far from the Seattle area, it pays to do your research before you start seriously considering a property. An investment like this is not something to do on a whim. Research the Seattle neighborhoods to get an understanding of the typical demographics of each area. Consider what sort of building you’d like to purchase, what tenants you’d like to work with, and find a neighborhood that fits.
You might be interested in renting an apartment to mobile professionals or acquiring a suburban home for a young family. The neighborhood you choose will help determine who your tenants will be, as each area has different amenities. Consider the local schools and the distance to transit. Zillow recommends that you educate yourself about rental properties for at least three to six months before moving into a purchase: “the better you educate yourself, the higher the chances you will take the proper steps to reduce your risks and make smart and safe decisions.”
Understand the Flip Side
Get to know the down sides of your prospective neighborhoods as well: research the crime rate of each area you are considering. Your prospective tenants will do the same, and this will impact the desirability of your property as well. In addition to human disasters, think about the natural disasters that could occur as well. Is your potential property located on a floodplain?
Even if a specific home looks promising, you need to think about the elements that could throw your property and your rental income into disarray. Plan for disasters, such as renovations that cost too much and vacancies that last for a long time. If you are conservative in your planning, you’ll reap the benefits when things go right.
Putting the Bank Into Balance
Consider all of your expenses for the property and how they will balance out with the prospective rental income. According to Investopedia, “rental income will be the bread and butter of your rental property, so you need to know what the average rent in the area is.” Look at the typical rental income for a home in the area you’re investigating. What are the property taxes on that home? Think about what you can afford as a mortgage payment. Examine the property trends in the area as well. If everyone is upgrading their properties as the area gentrifies, will you need to do so as well? Will the property taxes go up?
When you want to add a Seattle home for rent to your portfolio of investment properties, Lori Gill and Associates is here to help. We’re experts in the local property market, and we can help you manage your properties. Whether you live locally or abroad, we’ll care for your properties as if they were our own.