The longer a property sits vacant, the more money property owners lose—but what goes into finding the perfect investment property that attracts (and keeps) quality residents? How can you make the best property choices to help you grow your investment portfolio? Aside from delivering the best property management services, one of the most important things that property managers advise owners to be aware of is reviewing the job market for a potential investment area.
What is the Job Market Potential in the Area?
Tenants may have many priorities when selecting a home to rent, which can make successful rental management challenging. Amid renter priorities, one may stand out: they must have a good job to pay their bills. So, a flourishing job market is vital to your tenant's livelihood and choosing a profitable investment property!
While you've considered many other factors to identify properties with good ROI potential, don't forget about the current job market and future outlooks. Property owners can research a particular area for job availability rates by checking with the U.S. Bureau of Labor Statistics (BLS). This will give you an idea of what industries are thriving and which ones are dying off. This resource can also show the employment history of an area and help you evaluate if an area is set for a comeback or continues to have high unemployment rates. You can also visit a local library or conduct additional online research to find out additional details about the job growth in the area.
Also, a property owner should check to see what types of employment opportunities are planned for the Frisco area or other DFW areas. For example, if you get word that a new business is headed to the area, find out if it's in one of the top job industries, such as healthcare, technology, or retail. In areas where these job creators are booming, owning rental properties can be an excellent investment! If you're not sure how the current job outlook could affect the success of a rental property, work with a residential property management company to gain additional insights.
How Does the Future Job Market Look for the Area?
Although it may be difficult to predict too far into the future, property owners can look for indicators of whether an area is growing or struggling to provide enough jobs. If it's growing, the chances of a successful property are strong! One indication that an area is moving in the right direction is a new home and retail construction. Any time remodeling or new buildings is going up, property managers suggest that the area shows good potential for a strong job outlook.
You may also see various announcements or news reports about a large corporation moving to the area. If this is the case, you can probably count on workers looking for a great place to live. Big companies often encourage rental market growth when moving into a new area.
What is the Proximity to Jobs?
Aside from the job market, how close is a potential property to active job growth? Whether the job is close to a new corporation's headquarters or in the surrounding DFW metroplex area, your property could be close enough to where the jobs are to succeed. Many people in Frisco are willing to drive a little bit to get to work. In fact, according to the Census Bureau, Americans drive an average of 27.6 minutes to work, which is common for the Dallas-Ft. Worth area!
How Reliable is the Job Market in the Area?
The best property management company knows that nothing lasts forever, but it's important to consider the volatility of the local job market when investing. Before jumping in, you may want to talk with a property manager about the area and job market indications for long-term returns. When the job market seems steady, property owners can more comfortably purchase and operate rentals for future success!
Analyze Job Markets and Properties With a Frisco Property Management Company
Now that you understand the importance of having a hot job market for successful real estate investing, conduct plenty of research and talk with property management experts before putting your money down on an investment. Locations growing with employment opportunities will attract more tenants and help you maintain high occupancy rates and consistent income.
Work with the best Frisco property management offers to assess neighborhoods and properties that enhance your portfolio. RentHub helps investors review potential properties, then buy and manage rental homes that help improve ROIs. Reach out soon to learn more about our full-service property management and buying assistance!
Learn more about the ideal rental properties when downloading our free resource, the "Biography of a Perfect Investment Property."
Get The Biography