News > Think That It's Too Late to Buy a Rental Condo?

2016-02-20 by Liz Suto

Some people have determined that the golden age of income properties might have passed, but almost without fanfare in January, Scottsdale condo rentals available on the MLS have dropped to 813, the lowest point they have been since before 2014.  Months of Inventory was 5.29 which was the second lowest in the last two years. Renters are coming out of the woodwork and they want to live in an urban area, in an upgraded condo with great amenities.

So why aren't investors stepping up to meet this demand?  One reason might be that Scottsdale condo prices have increased steadily every year, which might have created an environment where investors are going elsewhere to find a better return. 

However, condo and townhome rental prices are increasing and this must be taken into account when determining whether a property is a good choice for a rental. The median rent for a condo in Scottsdale (using MLS data, unfurnished, not seasonal) was $1449 for the first 6 weeks of this year, up from $1332 for the first 6 weeks of last year which is a 8% gain.  Other people with money (i.e. corporations, hedge funds, investor groups etc.) have discovered this trend as well, which is why luxury apartment building is the new growth industry, not only here, but in most major urban areas in the west. 

Here are some of the trends we've found in condos and townhomes that were rented in Scottsdale in January:

• Three quarters of all condo or townhome rentals were 2-bedroom or 3-bedroom floorplans.
• High-end rentals (over $2500) are happening, but as an individual investor you'll be competing with luxury apartments, like Sonoran Village and Broadstone.
• A third of all rentals were under $1050
• On average, it took 39 days to rent the condos that found a tenant in January, a reminder to build in some vacancy into your calculations.

Condos remain one of the easiest rental properties to keep, requiring no outside maintenance needs (painting a house or replacing a roof ain't no fun for an investor).  You'll pay for that upkeep in the monthly HOA fee, but it is an often overlooked cost for rental homes. 

Some of the most popular condo developments in January are shown below.

If you are looking for an income property in Scottsdale, contact us. We'd be happy to lend our expertise as your buyer's agent in finding the right condo for you. 

 

Though not guaranteed, information and statistics in this article have been acquired from sources believed to be reliable.

Related Links

• OPTIMA CAMELVIEW VILLAGE
• RANCHO ANTIGUA CONDOMINIUMS
• DISCOVERY AT TATUM
• SUNSCAPE VILLAS

 

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