Choosing a rental property in Ellenton or Manatee County is about more than the location. Buying a new investment property must also factor in finding one close to excellent schools while also being in an area where renters want to live.
How important are schools when evaluating a potential property? Today our Ellenton Fl property management experts will discuss how a property owner should analyze schools when looking into your next investment properties so that you can find one with both quality and demand that generates an excellent return on investment!
Why Do Schools Matter?
Chances are, not all of your tenants over time will have kids. So, why do schools matter when selecting a property as your next investment? Property managers can tell you it's not just for the children who might live there but also for your other renters—and the property's future resale potential.
Many investors and property management experts have their own opinions about how much to weigh the quality of nearby schools against other critical components of a successful rental. Some people say that they would never buy a house within one mile of an "F" rated school because schools with ratings that low can also indicate other issues within the community, like a lack of city services, struggling businesses, and high crime rates.
However, before buying an investment property in an area with top-rated schools (and high property taxes to go along with it), investors should connect with property managers to evaluate potential returns to make sure the home will be a smart investment.
Consider Home Prices vs. Returns
Top-rated schools often drive up home values (and prices). While a rental property in an excellent school district will be more attractive to potential renters, you'll also pay more to purchase the property. However, the good news is that you can likely also charge a higher monthly rent amount!
Homebuyers are often willing to pay more for a house with proximity to good schools. It's also true that renters are often okay with a higher monthly rent payment to be in a district with an excellent school system. A property owner should work with a property management company to help you find the right balance of a real estate investment near high-quality schools without over-pricing the property to make it too expensive for families with kids who look for homes in sought-after districts.
Remember to Think Long Term
While good schools are a draw for quality tenants, remember to think long-term when evaluating the cost of a property near good schools and monthly cash flow. Eventually, you might want to sell the property. Homes in excellent school districts retain their value (and even see higher property values) over time than houses with poor-quality schools.
The opposite is true, too! A home in an area with poorly-rated schools can lose value over time. When evaluating a property, a low-priced home can be tempting if your focus is on generating immediate cash flow. However, bad schools can make it hard to find good renters. You might also lose money on the sale of the property when you eventually decide to sell.
How Should You Evaluate Schools?
What resources should property owners use to analyze schools vs. potential cash flow and long-term ROI? Since schools can influence the answer to "how much can I rent my house for," rental property owners should work with a property management expert to gather data and run the numbers!
GreatSchools.org is a good resource that gives information and reviews about specific schools. Using a website like Niche.com allows investors to research schools in specific locations like Ellenton, Bradenton, Fl, and other Gulf Coast areas. This site offers schools "grades" and delivers information, including student-to-teacher ratios and the number of students enrolled.
Proximity Matters, Too!
Don't forget about proximity! A website can tell you a lot of good information, but make sure you work with an Ellenton property manager to map nearby schools in context with a real estate investment you have your eye on. Homes close enough for kids to walk to school or are on the school bus route can be more appealing to potential families looking for their next rental.
Connect With Local Resources
While several good websites give insights into local educational resources, it's always best to connect with local experts. An Ellenton property management team is familiar with local schools and can give you firsthand insights into the information you'll find on school rating websites for Sarasota and the surrounding areas. A property manager can also direct you to the local school board and administrators if you have specific questions.
An Ellenton Property Management Company Analyzes Potential Returns!
It’s no secret that one of the most important factors when evaluating a potential real estate investment is the proximity and quality of local schools. Highly rated schools in Ellenton can be more attractive to renters with kids and improve property values (and returns) over time.
If you're looking for an experienced team to help you evaluate rental properties in light of these critical considerations, let Gulf Coast Property Management do so for you. Reach out and let us help you evaluate your next rental property and manage it to success through our professional property management services.