When looking for any rental property, there are a few items every investor needs to keep in mind. ROI (return on investment) and NOI (net operating income) are 2 that you should always consider; however, when looking for a luxury rental property there is no detail too small.
A simple way to view a luxury rental property is by its services that go above and beyond to satisfy the tenants needs, and wants. Luxury rental will have larger living spaces and rooms, with as many amenities as possible. No amenities are too small to overlook, making sure the property is well maintained and functional is a must.
Below are a few recommendations to keep in mind when evaluating a luxury rental property.
It is not uncommon for the clientele to be executives and top-level professionals moving into an area for a short term (i.e. 1 year lease) who are looking to enjoy a neighborhood where they may make a purchase once settled in. Though occasionally they may stay for a few years.
The location of your property is another important factor that needs to be accounted for. Areas such as Belmont Heights, and Naples would be prime locations to draw clientele to your luxury rental property.
One of the best ways to be seen by your target market is to be a presence when they’re searching for luxury apartments. Making sure your rental property is being featured in the most used search engines is required. This will likely require you to pay for advertisements to keep your property at the top of the search engines.
The rental property needs to look the part. A well taken care of and refined landscaping as well as a maintained building exterior will increase the property’s curb appeal. The landscape may include features like a walkway, bike path, garden or water features like a fountain or a pond.
To give the element of luxury within the units consider stainless steel appliances, granite countertops, hardwood floors and plenty of windows.
Of course maintenance in any investment property is important, but with luxury rentals it's expected to be more responsive to repairs and maintenance. For this reason it’s a good idea to have regularly scheduled preventative maintenance. Be sure to keep multiple contractors and tradesmen available to fulfill any emergency repairs on the property or in the units.
Normally this is an expense many investors try to save money on by going with the lowest bidder. With luxury rental properties, it is better to hire well trained, well dressed, polite and established contractors so tenants feel comfortable letting them into their homes for repairs.
Typical amenities that would be found in regular rental properties should also be found in luxury rental properties. Such as washer, dryer, dishwasher, private parking, and maybe a pool. Luxury rental properties are expected to go above and beyond what is necessary or expected.
There should be high end appliances, brands such as
Viking,
Thermador,
Monogram and
Gaggenau to name a few. Some luxury rental properties offer dry cleaning services while also providing in unit washers and dryers.
Although a pool is a nice amenity, having a sauna and hot tub available would be considered above and beyond. Fitness rooms should include modern and well maintained equipment and even personal trainers. Many tenants would appreciate a lounge area with a snack bar, cafe and even some co-working space.
Aside from what should be provided to a tenant, consider that many luxury rental properties not only allow pets, but even have amenities and services specifically designed for pets. This may include a dedicated dog park with dog course equipment.
High Speed internet wiring should be provided for either cable or fiber optic internet. Though its not uncommon for the property to provide high speed internet to each unit as well.
Finding the right investment property requires a little bit of research, if you need help evaluating a property you are looking at feel free to call us at (562) 888-0247 or feel free to fill out our
free rental analysis to see what your rental could yield today.
