Salt Lake, Utah has recently been recognized as one of the top 10 places to purchase a rental property in the U.S., and many property owners are seeing a return on investment as high as 10.7 percent. Salt Lake boasts nearly all of the characteristics that are associated with an ideal rental market, and there are also a number of excellent property management companies in Salt Lake that can help property owners optimize. With that in mind, let’s look at what makes a great rental market and how Salt Lake fits the bill.
1. Occupancy Rates
High occupancy rates are one of the most important aspects of a lucrative rental market. More than 40 percent of houses in the Salt Lake metro area are rental properties, and while occupancy rates have historically been high in this area, a recent trend has seen the area reach record highs. That means that your property is in high demand among renters, and when you fill a vacancy, you can expect that tenant to remain in the home over an extended period.
2. Home Prices
Another important aspect of a great rental market is home prices. After all, rental rate generally correlates directly to the value of the home. A company like Keyrenter Salt Lake can help you dial in the ideal rate for your property, but a good rule of thumb is 1.1 percent of the value. Of course, high home prices mean high initial investment, but the value of properties in Salt Lake have risen 11 percent year-over-year, and that trend is expected to continue in the immediate future.
3. Job Market
A job market that is not only healthy but growing attracts more people, which means more tenants and higher occupancy rates. The job market in Salt Lake is a primary reason why the housing markets in the area are doing so well. Don’t overlook universities when it comes to job market either. The adult student population isn’t a job market in the traditional sense, but it has a similar effect in terms of low vacancy rates. The fact that there is a major university in the area is another facet of what makes Salt Lake such a great opportunity for property owners.
As any Salt Lake property management company will tell you, the number of amenities in close proximity to your property has a direct effect on what you’re able to expect in rent. One reason that rental rates in Salt Lake are so favorable for property owners is that the area offers a wide selection of retail, dining and entertainment opportunities. You rarely have to drive far, and because it’s a diverse area with families, young single workers and college students, options in the area reflect that diversity.