Without a doubt, Tucson is one of the best places to live in Arizona! As a result, you can expect more Americans and immigrants alike to try to find their homes in the city.
This brings a great opportunity to real estate investors who want to buy rental properties. But finding a great rental property in Arizona is often a challenge, and with Tucson’s popularity, one can expect even more difficulty!
This quick guide will show you what factors to consider when trying to find great Tucson rental properties.
Here’s what you need to know:
1. There Goes the Neighborhood
While Tucson is one of the best places to live in Arizona, there are always going to be a few unsavory neighbourhoods in any big city. As a result, you must take time to research the neighborhood before investing in a property.
So, what makes a great neighborhood? You want to first ensure that it has a low crime rate. Make sure you look at statistics from at least the past 5 years. If crime has risen even slowly, you shouldn’t consider this neighborhood at all.
You also want to look at the growth of the neighborhood. You should only choose a neighborhood that has seen a population growth within the last 5 years. Any small decline in population is a red flag.
You can read this article for more information on choosing a great neighborhood to buy Tucson rental properties.
2. Property Taxes
Whether you have to pay property taxes or you charge it to your tenants, this is a major factor in choosing Tucson rental properties.
It’s often difficult to avoid high property taxes, but you want to find properties with reduced rates if possible. If you have high property taxes, you’re in greater danger of losing your property.
If you decide to charge that property tax to your tenants, you’ll have to contend with only having access to a small group of potential tenants.
The final factor is the overall culture in the surrounding area of the neighborhood. For example, is the area mostly catered toward young college students? Or is it better suited for families and children?
Both types of cultures are fine for finding tenants. With the younger crowd, you’ll have short-term rentals, but you can expect regular turnover.
With families, you’ll have long-term rentals, but you’ll find it harder to get the right tenants. This is because families often have stringent requirements for what type of home and neighborhood they wish to live in.
Buy Tucson Rental Properties
Use this quick guide to help you find the best Tucson rental properties to help build your real estate investment portfolio.
The first factor should be to find the right neighborhood. Make sure that crime rates are decreasing and that population growth is increasing.
You should also choose a rental property that has low property taxes. This ensures you can attract more potential tenants.
Make sure you also consider the culture of the surrounding area. You can find interested buyers from across different demographics.
Stay ahead of the competition by reading more real estate tips on our blog!