If you’re thinking about investing in a new rental property (or two) there are several factors to consider. Perhaps one of the most critical factors and the first decision to make is where your property will be. This can have a substantial impact on being able to attract tenants and what rent you will be able to set. It’s important to do your homework on each location that you are considering. Here are five hot spots where rentals are in demand and command top dollar.
Home to rivers, mountains, canyons, deserts, and lakes, Boise is popular with those who love the outdoors. As coastal cities continue to grow and become more expensive, people are moving inland to find jobs and more affordable places to live.
With population and job growth triple the national average, low unemployment rate, and year-over-year rental growth, Boise could be a great place for you to invest in rental property. The Boise housing market was ranked as the #1 in the U.S.by Realtor.com in 2020 but slipped to #4 in their 2021 list. The average rent for an apartment in Boise City is $1,508 and 43% of properties in Boise City are rental properties. Best of all, Idaho has one of the cheapest landlord insurance rates, which means lower costs for your business.
Memphis, Tennessee remains one of the top locations to own rental properties. Located along the Mississippi River, the city is home to Elvis’ Graceland, the Blues Hall of Fame, and a bevy of tourist attractions.
There is also a high population of millennials, meaning that rentals are very popular. With Fortune 500 companies like FedEx and International Paper and AutoZone calling Memphis home, the job market is thriving. The average rent for an apartment in Memphis is $967 and 43% of property in Memphis is rental property.
Previously we listed Miami as one of the most lucrative landlord locales and, whilst it is still a great area to invest in, Tampa also deserves a look.
Tampa is an attractive metropolitan area and one of the most frequently visited tourist destinations. In addition, it is a popular relocation spot for retirees, providing many short-term rental opportunities. The average rent for an apartment in Tampa is $1,647 and 44% of property in Tampa is rental property. Also of note, a perk of owning property in Florida is that the real estate property tax rate is only 0.98%, compared to 1.08% nationally.
Scottsdale is a favored spot for Arizona State University professors and graduate students to live, as well as for retired Northerners to visit during the colder months. With more than 76,000 students (plus the faculty that teaches them), landlords in Scottsdale have a steady stream of tenants interested in renting, distancing themselves a bit from Tempe’s undergrad-saturated communities.
And it’s not just students, Scottsdale is also an emerging tech market with companies such as GoDaddy, Yelp, Paypal, and Indeed.com all opening offices in Scottsdale. The average rent for an apartment in Scottsdale is $1,914 and 44% of property in Scottsdale is rental property.
Everything’s bigger in Texas, they say, and in Dallas that includes the number of renters.
Dallas has a substantial single, upwardly-mobile professional population. This demographic is a landlord’s dream as young professionals tend to be responsible and reliable tenants.Things aren’t slowing down either with the population expected to double in the next 15 years. One of the reasons for this population growth is the large and diverse job market with leading industries in technology, financial services, and defense. The average rent for an apartment in Dallas is $1,383 and 43% of property in Dallas is rental property.
These hot markets are full of renters anxious to sign on the dotted line and find their next home.