How does the job market affect your property's ROI? Property prices, rental rates, and vacancy factor into it. Sarasota, Fl is a great place to live and work, but when jobs aren't as plentiful, real estate investors can experience fluctuations in their ROI.
Property owners need to keep the job market in mind (along with other factors) when establishing rental rates and analyzing new potential investment properties to buy. How much do employment rates impact return on investment? Keep reading to learn more from our Sarasota property management team!
More Jobs = More Rental Property Success
We're not saying that investors can't find success in a struggling economy or when the job market isn't necessarily "booming." You certainly can! However, as a general rule of thumb, more jobs in a market lead to more rental property success for landlords.
With a thriving employment atmosphere, more people need homes! Delivering quality housing for Sararosta renters is an excellent opportunity to capitalize on a stable job market. Keeping an eye on local job trends, new businesses moving into the Gulf Coast area, and employment numbers can help investors identify the best areas of town to support the working population.
New Business Is a Good Sign
When local governments or corporations announce that new business is moving to the area, it's time for real estate investors to pay attention! Whether it's preparing your investing portfolio by buying existing homes to turn into rentals or looking for new builds that often come into existence when the workforce grows, new business often coincides with an increase in housing needs to house more of the population.
To learn about job and business trends in the Gulf Coast of Florida area, check the U.S. Bureau of Labor Statistics (BLS), watch local news sources, and stay connected to a residential property management team familiar with the area. The best property managers stay on top of business and population growth to help rental owners capitalize on changes and boosts in the job market.
Watch Housing Prices
Timing can be everything when watching job trends and planning your next investment property purchase. Often, when job demand and opportunities go up, housing prices go up, too.
The key to buying real estate investments at reasonable prices is to purchase good properties before housing costs increase. When owners can anticipate where new housing demands will take place within the area, they have a better chance of not getting stuck with high home costs to add to their real estate investment portfolios.
Fluctuating home prices are another good reason to partner with an excellent property management company and keep them in the loop on your goals. The best residential property managers help you watch the market and find good properties when it's clear that the job market is about to explode.
The job market isn't always predictable when it comes to housing prices. Sometimes a property owner will see prices go down depending on the area around new business construction and the type of companies bringing jobs and population growth to the area. Having an excellent property management team in your corner is the smart way to analyze potential investment properties with the right experience about how what's happening in the market will affect the rental industry.
Stick to the Basics With a Property Manager
When choosing a new investment property (no matter the market conditions or potential job outlook), don't forget the basics of what makes a good property with excellent returns.
Work with your property management company to find rentals that:
- Appeal to quality renters
- Make good "return on investment" sense when running the numbers
- Are in a desirable location
- Can command competitive monthly rent prices
- Fit your budget and goals
Your property manager can help you run ROI calculations and analyze the numbers for a property you have your eye on. They can also help you with the best timing to invest in new rentals to ensure that properties are ready to meet new housing needs from job growth.
The right property management company also helps investors make smart upgrades and market rentals to attract quality renters, then run a thorough screening before placing new tenants. While your properties should meet the market's demands, it's always critical to screen prospective tenants thoroughly to protect your rentals and income.
A Property Management Company Analyzes the Job Market for Investment ROIs
The job market can have a significant impact on the future ROI for your property. When Sarasota and Gulf Coast areas experience changes in job growth or employment statistics, it’s important to connect with an experienced property manager, so you know how these changes may affect investment returns.
If you want to help ensure that your investments meet your long-term financial goals, Gulf Coast Property Management is here for you! We specialize in helping investors choose rentals with great potential for return on investment (ROI), then managing those properties for success. Contact us today if you need any information about our property management services and local market insights!
Learn more about what makes an excellent rental property! Get our free guide, "Biography of the Perfect Investment Property."