How are Turnkey Rental Markets Chosen?
Have you ever wondered why your favorite turnkey rental provider chooses some markets over others? Who says it’s better to invest in Memphis than in Aspen, for example? Wouldn’t a ski resort be a better place to buy real estate, especially if you were looking for a turnkey vacation rental? Well, the thing is, if you’re interested in buying a turnkey vacation rental, that’s a whole different investment than a standard turnkey rental. A turnkey rental can bring you consistent passive income for life, whereas a turnkey vacation rental might be vacant for several months out of the year. Here are the criteria that MartelTurnkey uses to find out of state turnkey rentals that investors can hold on to and make consistent passive income for years to come.
Unemployment Rates and Job Opportunities
One of the things that we always look out for in any market we look at is the unemployment rate. We want our investors to have tenants who are able to find and keep gainful employment. And while there are some national unemployment statistics that affect the whole country, there are regional unemployment figures that need to be considered, too. So when we evaluate a market, we look to see if there are enough job opportunities in the area to support tenants at a standard 3x rent-to-income ratio. In other words, can an ordinary person in that market easily make three times the rent at a local job? This is important criteria because it influences vacancy rates as well. We don’t want our investors to struggle finding and keeping tenants. This is one reason why, when we send out those weekly property email alerts, we indicate if the turnkey rental is near a major employer such as Amazon or the Cleveland Clinic, for example.
Population migration refers to a rising popularity of a city or region. Where turnkey rentals are concerned, population migration into an area is considered a positive indicator of a strong market. People typically move to new areas for jobs when they lack opportunities elsewhere. When those people relocate, they need to find a place to live, which creates increasing demand for rentals. Population growth is one of the many criteria that we look at when assessing any out of state market.
Another factor that plays into getting and keeping quality tenants is local amenities. Quality tenants are inherently more stable and they often have a family. Tenants like that are looking for places to rent that offer local amenities like parks, quick access to highways (for a shorter commute), plenty of restaurants and other activities where they can spend time outdoors with family. While this isn’t a deal breaker, having local amenities definitely makes a neighborhood look more attractive for MartelTurnkey, our clients and for prospective tenants!
Related to job opportunities, a diverse economy is another important criteria when evaluating a real estate investment market. At MartelTurnkey, we want our investors to own properties in cities that won’t be financially decimated if a large employer decides to pull up stakes and leave town. We all learned a valuable lesson from Detroit. Markets where there is a diverse economy are more stable from a financial standpoint and more likely to withstand regional and even national economic downturns.
There’s no getting away from crime anywhere in the world, but some areas are definitely worse than others. You don’t want to own a turnkey property in a neighborhood that’s dangerous with high crime rates. At MartelTurnkey properties undergo extensive analysis to determine if they are in reasonably safe areas. There are no guarantees in life, but there’s also no reason you should invest in an area where your property has a high chance of being destroyed for one reason or another.
Owner Occupancy Rates
This is yet another factor that we look at when considering a property. Owner occupied homes tend to be better cared for, which equates to better neighborhoods. At MartelTurnkey, we aim for owner occupancy rates of 60% or higher for any neighborhood we’re looking at. For that reason, when you look at MartelTurnkey rental properties for sale, they will typically be in neighborhoods with nicely kept lawns and tidy streets.
We want you to know we are looking out for your interests by evaluating all these criteria and then some. The bottom line is, you can feel very confident investing in MartelTurnkey turnkey rentals. When it comes to profitable, passive income turnkey rentals MartelTurnkey has you covered. We spend thousands of hours researching markets to find our clients the best possible real estate investment properties using the criteria mentioned above. With our years of real estate expertise and your desire to make passive income by owning turnkey rentals, we’re a winning team!