Did you know Reno, NV has a rental vacancy rate of 2.4% from a tally of 15,067 units? The vacancy rate for homeowners in a city with less than 90,000 people is 0.7%.
If you're in the market to join the ranks of investment property owners and are focused on Reno, there are some things to keep in mind to be successful. Buying a rental property can be a great investment if you do things correctly.
Continue reading to see three tips for selecting investment properties in Reno.
1. Consider the Neighborhood
When looking for an investment property, you must find a suitable neighborhood. Reno has various communities, and some may better fit your long-term investment goals than others.
Remember that the area in which you buy a rental property will factor into the kind of tenants drawn to your property and the vacancy rate you contend with.
If you buy an investment property near the University of Nevada, Reno, for instance, students may rent from you. One issue is that they don't usually have a great income, and many of them may move back home after the school year.
You might have to keep rent lower in line with the demographic. As an owner of Reno real estate, you may also have to deal with a higher vacancy rate when the school year concludes.
Consider these types of things before investing in real estate. You'll want to think long and hard about where to buy Reno real estate. Doing so will help you maximize your upside potential.
2. Consider the Property Tax
You also need to consider how much property tax you'll pay for Reno real estate. Property tax is something you can't avoid, but the type of real estate you buy in Reno can impact how much property tax you're assessed.
A higher property tax isn't necessarily a horrible thing. It might be a function of owning an investment property in a popular area of Reno. Purchasing a rental property in a good community will come at a premium.
Ensure you understand the tax implications before signing on the dotted line for any investment property in the area.
3. Consider Property Management Needs
You'll also want to weigh your property management needs before buying any investment property. Owning rental real estate means investing a lot of time, effort, and resources into keeping it up and running.
You'll want a rental property that attracts quality tenants and continues to appreciate in value over time. Hiring a property management firm that can do the heavy lifting makes more sense.
Owning a rental property means finding the right tenants, handling customer service, maintaining the property, making repairs as required, collecting rent, filling vacancies, etc.
Get Help With Your Investment Properties
If you want to buy a rental property, keep these three tips in mind. It's essential to have a game plan in place to get the right real estate, and hiring a property manager is one of the best investments you can make.
If you need help with your investment properties, get in touch with us at PMI Reno. We specialize in helping rental property owners manage their real estate and protect their investments.