Benefits Of Buying Luxury Condos As Rental Properties
There are many types of property rentals to invest in, but luxury homes are a great market to be in. Here are some reasons to invest in luxury condos for sale.
Safe Communities
One reason that luxury condos are a safe investment is that they benefit from a great community. Condos with a luxury price tag are likely to have a great homeowner's association that takes care of many maintenance and security issues for you so that you don't have to worry about your tenants.
Flexibility in Pricing
Luxury condo rentals can be more difficult to find than your standard room for rent or single family home. This gives you a lot more flexibility in pricing your rental property because there aren't many other options for people looking in this rental category.
A Larger Return Per Add-On
The sky is the limit when you decide to start investing in luxury rentals. Tenants may be willing to pay for comfort and unusual amenities, which means that you can take the price even higher per square foot for each new feature that you add to the property.
Better Tenants
Tenants that are able and willing to spend substantially on their rental may make for better tenants overall. For one, they may have a more stable financial situation that leads to longer terms of stay and fewer defaults on rental payments. If they are spending a lot on their home, they are likely to take great care of it as well; you may see lower property damage.
A Great Vacation Spot
Finally, if you purchase a luxury condo for sale, there's the possibility that you and your family can use it as a home away from home. For instance, you could time leases to end during a vacation period so that you can spend time in the condo yourself.
One Thing to Note Before You Buy
Before you get excited about the possibility of buying luxury condos as rentals, it's important to note that these properties (and their tenants) can have a much higher cost of upkeep than other types of rentals. When tenants are paying for luxury, they will have a much higher expectation of how the property will be managed--how quickly complaints are dealt with and maintenance issues fixed, for example. If you are a newer landlord, it can be a great idea to get a property manager when you're working with luxury properties to make sure that everything goes smoothly and the properties are a cinch to manage.