You’ve come across luxury rentals in your search for investment properties. Many times inexperienced and seasoned investors turn away from them due to the initial investment. Luxury rentals will command higher rental rates and attract higher-income tenants. This can result in a higher rental income when compared to nonluxury rentals.
Below we’ll review a few key elements to consider when looking for luxury rentals as investment properties.
A luxury rental is more than just the property itself. The location of the luxury property is a crucial factor to consider when investing in luxury investment properties. For example, neighborhoods like Alamitos Heights, Rancho Estates, and Naples are considered luxury neighborhoods in Long Beach. Luxury apartments and condos in Long Beach include ocean center, Beverly Plaza Apartments, and Volta on Pine.
What makes a neighborhood a “luxury” neighborhood usually means the property is located near desirable locations such as shopping centers, restaurants, and other entertainment options like proximity to the beach. Highly desirable locations will often attract well-off tenants with stable jobs.
Look for properties in prime areas with high demand and proximity to amenities like shopping centers, restaurants, and entertainment options. A desirable location will attract affluent tenants willing to pay a premium for luxury accommodations, maximizing your rental income potential.
Amenities in the property can play a significant role in how successful a luxury rental is. While standard in-unit amenities should be upgraded regularly, items such as appliances, keyless entry, and wifi should be expected to be modern and up-to-date. For luxury rentals, there is no such thing as enough amenities. Ideally, your tenants shouldn't need to leave their homes to get chores and errands done that they don't want to do. Onsite amenities that all tenants can use are often desirable. Often the onsite amenities can include laundry/dry cleaning services, a commons area for tenants, office space, and even restaurants.
Other amenities that can be desirable include upscale finishes, an open concept, a gym, swimming pools, as well as dedicated and secure parking. These amenities can differentiate your property from the others on the market. They can also attract tenants willing to pay a premium for a luxurious living experience.
Like many investment properties, it's important to keep up with maintenance. However, with luxury rentals, you’ll typically require specialized management to maintain the higher standards of a luxury property. It's also likely that you’ll need to cater to the specific needs of the tenants. It's important to ensure the property management company you hire to maintain these properties has adequate experience.
Not only should they be skilled in managing tenant requests, maintenance needs, and inspections to ensure the property is up to date and well maintained. This way, the property can operate smoothly, and tenants remain happy. A happy tenant results in fewer vacancies in your properties and fewer complications with tenants. A high-quality and competent property management company can help you to protect your investment, ensure a positive rental experience for your tenants and give you the freedom to spend your time however you wish.
Entering the luxury real estate business can seem daunting because of the investment cost. Nevertheless, the opportunity to substantially improve your profits is there as well. If you believe you’re ready to invest in luxury rental properties or need a property management company to help manage a luxury property you own, we invite you to call us today at (562) 888-0247 or fill out our
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