How the Neighborhood Can Add Value to Your Rental Property

In many cases, rental property is only as valuable as the neighborhood it’s in. Your rental property appeals to tenants based on the rental price, but there are other factors that come into play too. Different demographics will look for different things, such as proximity to good schools, when they make a decision to rent. 

The more you can offer tenants as a landlord, the more likely you are to attract good tenants. Marketing certain features of the neighbourhood can spark interest in your property and increase its value. With this being said, you will need to be confident that the tenants you allow into your property are reliable, you can check the background of the tenant by utilising the services of these Bond Rees Detectives (or an alternative in your local area) this way you can determine if the tenant could become a potential threat to you in the future with situations such as forgotten/missed payments and completely ruining your property or a good, dependable tenant.

 

On-site amenities

Laundry facilities, playgrounds, pools and other amenities are commonly found in apartment complexes. Landlords have to maintain and upgrade these amenities, but they increase the value of the entire property. It is easier to find good tenants for an apartment if you offer these on-site amenities. 

Find out just how much an apartment could be worth with a free rental report from Evernest, Mynd or Home365. Managing rentals in Atlanta is easy with this property management company. It will find you a well-qualified tenant, perform annual inspections, and do maintenance. It also provides convenient payment methods to ensure your funds are delivered accurately and on time. 

 

Parks, pools and other public amenities

Local parks with picnic areas, gyms, bike trails or footpaths can make a rental property more attractive. Parents want to live in neighborhoods where they and their kids can enjoy a good lifestyle, and the cost of rent is only one of the parameters they consider.   

Any feature of a neighborhood that’s desirable to tenants adds value to a property. Some amenities, such as public toilets, come with a downside as they may attract the wrong people and decrease value. Others, like beautiful, well-maintained parks or top restaurants, will add to the value of a property. 

 

Walkable areas

If it’s easy to walk to schools, shops, coffee shops, restaurants and parks, the value of the property is sure to be higher. The convenience of being able to walk to collect kids from school or to buy bread at a local store is very appealing. 

Having a place of worship within walking distance can be a significant benefit to certain tenants. While the presence of a megachurch could drive prices down, having a local synagogue could increase value for Jewish tenants.  

 

Public transport

Tenants who don’t want to commute to work by car may want easy access to public transportation. It’s good to have a bus stop or railway station near a house, but the proximity matters. For instance, having train tracks too close to the house will decrease its value due to noise pollution and safety concerns. 

A bus stop directly outside a house will have the same effect and tenants don’t want to hear buses idling and smell their exhaust fumes all day. You will need to way up the pros and cons of proximity to public transportation for the tenants you want to reach.    

 

Landscaping and architecture

A well-maintained and landscaped neighborhood add to the value of houses in the area. Tree-lined streets, an absence of graffiti, neat verges and median strips decorated with greenery and flowers are features that appeal to tenants. 

Historical landmarks and heritage buildings can also add value. If you make every effort to make your home appealing, but your neighbors aren’t doing it too, it can be a red flag to future tenants. A number of visually appealing properties in a neighborhood can increase the value of all the properties.

 

Good public schools

Whether or not a neighborhood has good schools is an important factor when considering buying a property for rental. A school where one teacher has to handle about 40 students and graduation rates are low usually indicates a deprived neighborhood. The rental prices are lower in such neighborhoods. In fact, it may be a worse investment to buy near a homeless shelter than in a bad school district. There is a direct correlation between property prices and good schools. House prices in neighborhoods with desirable schools are going up all the time. 

 

Low crime rates

A large home with a pool will have less value in a neighborhood with a high crime rate. Tenants want to feel safe, and so a neighborhood with a low crime rate is appealing. Many prospective tenants consult firms to gather detailed information on local criminal activities. See if you can find data about the crime stats within a neighborhood. Crime maps may indicate which neighborhoods have the most and least crimes in a year.

 

Locations a short distance from desirable destinations

A neighborhood that’s a short distance to beaches, mountains and other desirable destinations can increase the value of a home. It doesn’t hurt to assemble a list of nearby activities and destinations and include it in your rental description.

 

Neighborhoods with strong demand

If young families are the main demographic in a neighborhood, there will be more demand for larger homes with several bedrooms than smaller apartments. 

Certain neighborhoods attract hip, young educated tenants and the industries that employ them. They are moving in search of better jobs and out of markets like New York City and San Francisco. Cities like Tampa, Nashville or Denver are drawing them because they have good job markets, plenty of activities, and a good food and bar scene. You can narrow it down to neighborhoods within these cities where there is strong demand. In some neighborhoods, rents are rising, and apartments are being leased before they can even be listed.  

With more people working remotely since the pandemic, they are leaving the cities in favor of more suburban spaces. They are looking for locations that offer them a good standard of living so they can enjoy their free time. The more people chase after suitable properties like this, the more valuable they become. 

 

Conclusion

More than any other factor, purchasing a rental property in the right neighborhood will maximize your rental price. Depending upon the demographics, your tenants will appreciate different things. Young families will want great daycare and schools, safe neighborhoods and opportunities for affordable family activities. Retired people may want libraries, accessible walking trails and recreational opportunities. When you’re marketing a property, you’re not just marketing a building but an entire neighborhood because that’s what your tenants will value.