How Neighborhoods and Demographics Affect Your Rental Properties in Oklahoma City
In article, I discuss two factors that are completely beyond your control of a landlord. These two factors, neighborhoods and demographics, have a dramatic effect on how well your rental properties in oklahoma city perform.
Let’s face it, there are factors that are within a landlord’s control, like upgrades you can make to your rental property. But some things you can’t change.
#1 Neighborhood where the rental properties in oklahoma city are located
I hate it when I hear something like “this property, which is priced in area X would be worth 5 times as much if it was located in area Y.”
These are houses and small apartment buildings, not mobile homes. They are where they are.
Owning a property in war zone
If the rental property in oklahoma city is located in a neighborhood that is a war zone, there isn’t much you can do about it. You can make the changes I discussed above to make it as desirable a property as possible. But it might never be a good long-term investment because of location. Even a good property management company may not be able to overcome this.
The most blighted area in Oklahoma City right now is the northeast part of the city. I own and manage numerous properties in this area. Some of those houses are definitely within war zones. Some of those houses have had quite a bit of vacancy. I have sold some of those properties via owner financing to other real estate investors who are just getting going.
If you feel like you are trapped in a perpetual cycle of fixing up a property after the tenants move out after living there for 6 months or less, you might start thinking about cutting your losses. No matter what you do, some rental properties in oklahoma city are just not going to stay occupied. You might just have to sell it, and try to make the best of bad situation.
The first thing that you will run into with the cut and run approach is that no-one else may want the rental property either. You might have to take your lumps in terms of price. However, you might consider selling the property on owner-financed terms.
This should be your last resort. As an owner, I have come to this conclusion on a few properties I’ve owned, but it hasn’t happened very often.
2) Changing Demographics of the rental properties in oklahoma city
Demographics are quantifiable characteristics of a population. They include characteristics such as age, race, and income.
For example, the demographics of the Oklahoma City metro area are summarized here.
Over the long term, the demographics of neighborhoods change. This can have an obvious effect on the demand for rental properties in oklahoma city.
For example, over the last 20 years, the Hispanic population of the south side of Oklahoma City has increased. The southwest part of the city is an excellent area to buy rental properties in oklahoma city. Many of our property management clients are buying properties in southwest Oklahoma City.
Obviously, a demographic trend like this is obviously nothing you are going to change. You simply must accept it, and develop your investment strategy around those trends. Don’t hold onto a property thinking that at some point the neighborhood is going to turn around if the demographic trends are in the opposite direction.
If you have questions about specific neighborhoods, call me.
Scott Nachatilo on Google+!