PennySaverUSA.com strives to bring you the best resources and information about everything we have to offer. This will be the first installment in our Real Estate Blog Series. We’ll bring you the best tips when it comes to anything real estate, and provide you with the knowledge and tools you need to make the best decision.
The Pros and Cons of Renting in Metropolitan Areas
Renting out a property in the city can seem to be a daunting task, and in many ways it is. There are a lot of perks for moving your business to a metropolitan market. In order to make a sound decision if a city rental would be good choice for your property investment and business, Dusty Henry of All Property Management has put together some pros and cons.
Pro: Location and Population
While geographically large cities are not always “centrally” located in the state; big cities are usually the central hub for many other large towns surrounding it. These big cities are often the cultural epicenters for communities as well as a high source of employment opportunities. Cities like these typically get to this size because of the big businesses that settle in them. This means there are more people with high profile/paying positions than you might find in a rural area.
Metropolitan areas are also more densely populated. This means you are working with a larger pool of people to draw from in potential renters. Working with more people means better odds of finding the right tenants.
Con: More People, More Problems
More people may mean more potential for finding the right tenant, but it also means that you will definitely find a lot of unqualified people applying for your rental. The time you will put into tenant screening will likely go up exponentially when you rent in a densely populated area. In property management, time is valuable (especially if you are managing multiple properties). You do not want to waste too much time looking for a tenant, but you also do not want to rush the job and end up with someone who will be harmful to your investment.
Pro: Appeal of Convenience
Urban areas typically have a leg up on access to a wider variety of local resources, shops, entertainment, etc compared to someone who lives in an outer rural area may have to travel all the way into the city to pick up something specific they need. With cities providing many jobs to outlying areas, a city apartment or home rental can be very appealing to potential tenants as it would greatly lessen their commute.
From a management standpoint, you also have the convenience of having a wider selection of maintenance companies to work with in the case that something goes wrong with the rental.
Con: City Limitations
Just as if you were to manage a property in a far removed rural area, the city has just as many limitations. There are some safety concerns that come with city dwelling. There are likely going to be city ordinances that you will have to follow as to what you can do to the property. This is likely to happen at any place that has an HOA (Homeowners Association) as well. Depending on where in the city it is located (whether it is literally on the street or in a suburb within the city), there may also be a risk of vandalism to the building, which sometimes cannot be foreseen.
This first guest blog post was written by Dusty Henry of All Property Management. Property owners in San Diego can connect with homeowners easily with All Property Management. They have a wide directory of property managers and free quotes make finding the right person to manage your property painless and simple.