Renting out Salt Lake City homes means considering the quality of local schools—whether you rent to families or not. Although most real estate investors are primarily concerned about monthly cash flow, the value of a property comes into play when you eventually sell it and consider the ideal monthly rent amount. If there are no good schools nearby, it could affect the return on investment for your rental properties.
The best property management company Salt Lake City offers helps investors evaluate many factors when considering a new property, including the quality of nearby schools. Keep reading to learn more about how schools can impact the success of a rental property (and how to analyze potential ROIs).
Schools Impact Every Rental Property Owner
While investors with family-sized homes should pay special attention to local school ratings and proximity, schools impact every investor when choosing rental properties.
Property values are influenced by the quality of nearby schools, making it paramount for investors to choose properties in the best school districts wherever possible. Even if you're not renting your property to families with children, real estate agents and Salt Lake City property managers will tell you that location is everything.
Property value depends on which way a neighborhood trends—up or down. Property management professionals agree that good schools indicate an upward trend in any neighborhood, which can help attract better renters to your properties. Excellent renters pay the rent on time every month, take good care of the rental unit, and often renew their leases—all critical elements to generating better returns!
How Should You Evaluate Schools?
Whether you're a local investor or choose Salt Lake City, UT properties while living in another market, finding good information about local schools is critical when analyzing the potential for a new property. If you're not a parent, it's essential to think like a renter who is the parent of school-aged children when reviewing school information.
A property manager recommends asking questions like:
- Do families move to this neighborhood due to good schools?
- Are families leaving the area because of poor-quality schools?
- How do the local schools compare to other neighborhoods or suburbs?
- How do these schools rate based on parent reviews?
- Would I send my kids to these schools?
A website like Greatschools.com offers ratings and reviews of local schools for grades K-12. Property owners can find information about the school experience for children and testing performance. You'll also have access to information about student demographics and teachers and staff.
In addition to websites like Greatschools and Niche.com, a property owner can search individual school websites and find information about school boards and districts. While third-party information is excellent, talking with a property management company can also help investors learn more about local schools and how they can impact the success of a new investment property.
Why Do Schools Matter?
As we briefly mentioned, the quality of nearby schools significantly impacts property values, rental rates, and ultimately the future resale price of a home. To attract quality long-term tenants (whether they have school-aged children or not), real estate investors should prioritize homes near excellent schools.
Property managers know that with good schools come:
- A strong sense of community
- Excellent property values
- Better-quality residents
- More community resources
- Lower vacancy rates
To justify competitive rental rates and maintain consistent cash flow for better long-term ROIs, choosing rental properties near good schools is a smart way to invest. In addition, when it's time to consider selling a property, homes in good school districts can sell for higher prices than properties near poor-quality schools.
What About Colleges?
How does a property's proximity to local universities or colleges impact returns? It depends on your goals as an investor!
Good high-education institutions can also be good for property values and high demand for rental housing. However, rental property owners should be prepared to manage student renters and roll with the unique aspects they can bring to a property and income.
Student housing can leave a property owner with inconsistent cash flow and high turnover rates as school semesters begin and end. In addition, students aren't always responsible renters that care for a property and pay rent on time. While the best property management companies won't advise against renting to students or purchasing homes near a college or university, it's important to be aware of how these properties could impact cash flow.
A Salt Lake City Property Management Company Helps Investors Evaluate Schools and ROIs
Investing in a rental property is a long-term commitment! Schools can impact your returns for many years, so it's critical to research local schools and apply that information when estimating the potential return on investment. If you're not sure how to apply school ratings and scores to your evaluation process, a Salt Lake City property management company can help! Reeder Asset Management has years of experience in our local market and can provide valuable insights about the impact of schools (and more) when considering your next investment property. If you're looking into the area, reach out to our team to learn how our residential property management services can help answer the question, "what is property management!"
Learn more about how to evaluate potential investment properties! Download a free copy of the "Biography of the Perfect Investment Property."