The Condo Mania Team
News > Think That It's Too Late to Buy a Rental Condo?
published on 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.
The Optima Camelview is a newer construction mid rise condo development on Camelback Rd. in the Scottsdale Old Town area. Every unit has a garden terrace, with views of the landscaped courtyards, or of the Scottsdale city lights. The eleven buildings are 7 stories tall.
Units range from 800 square feet to 3,000 square feet or more of living space with views of the interior courtyards or out to the city. Interiors include nine-foot ceilings, gourmet kitchens with granite ...
Pretty much all of the units are nicely remodeled at Rancho Antigua. Newer cabinetry, tile and granite are the norm here, which makes this a community worth looking at if you don't feel like remodeling.
Rancho Antigua features 3 pools and spas, clubhouse, grilling area, fitness center, and tennis courts. It's setting in the McCormick Ranch area allows residents to take advantage of the miles of bike trails around the area. Easy access to the 101 make this central location a ...
Discovery at Tatum is in a prime location for any 101 and 51 commuters. Along with the convenient location, prices are reasonable for a Scottsdale address. Floor plans vary from the townhome style to the one-level condo style with some units having a generous private patio. Covered parking is directly in front of unit. The community has a pool and manicured common areas with mature trees.
Note that there are 2 locations for Discovery at Tatum place - 4901 E. Kelton, and 5704 E. ...
Sunscape Villas is popular with our buyers who want a reasonably priced resort-style community near downtown Scottsdale. Though the community is older, most residences were remodeled with new cabinetry and flooring. A big plus for this community - Sunscape is one of the rare communities in Scottsdale with reasonably priced golf-course view units.
Amenities are another draw for this community, and include 2 Pools, Clubhouse, workout facilities, Theater room, concierge service, and ...
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Information Deemed Reliable But Not Guaranteed. The information being provided is for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. This information, including square footage, while not guaranteed, has been acquired from sources believed to be reliable.
Last Updated: 2024-03-02 05:14:12