In today’s world, when many cities are maxing out their population capacities with no room to grow, it is still possible for real estate investors to still make a profit. However, they need to change their strategies. One strategy that a property manager in St George would suggest is to invest in micro-apartments, which are becoming an increasingly popular housing option in population-dense cities. The idea is already proving beneficial in many cities like Chicago, Vancouver, New York City, San Francisco, and Boston. You may even consider using it in St George to improve your ROI.
The Growing Demand for Micro-Apartments
Micro-apartments will meet the growing demand for two-person households in urban Southern Utah and other surrounding areas. Since these apartments target middle-class and Generation Y residents that usually cannot afford housing in prime neighborhoods, it is natural to see these units occupied quickly compared to a regular rental home.
However, it is vital to consider certain things to ensure that offering micro-apartment rental units is a good business decision. If you’ve been managing your property on your own, you may require third-party help when you switch to micro-apartments. These apartments will require more maintenance and your administrative duties will increase as well.
Another important consideration is the overall cost of developing or converting a micro-unit community. An efficient design is vital to ensure the needs of all your tenants will be fulfilled, even in a 250 square foot space. This means that the switch to smaller rental units is quite often complicated, as it’s not about chopping an average vacation home into two or three micro units. Above all, you have to assess your market opportunity before selecting this housing option.
Working with a Property Manager to Succeed
A professional property manager will always provide immense help at every stage of your real estate business. From helping you establish third party contracts, to converting your property, to conducting a marketing campaign, they can handle it all. A manager will help you determine if you should construct micro-apartments in your location or not. This concept usually works well if your rental property is in an up-and-coming neighborhood. Moreover, you will yield good returns if you have the right buyers in your area who are interested in an affordable and urban lifestyle.
A property manager will make an accurate estimate about the rent you should ask for each unit. To make it a successful venture, it is important to ask for lower than average rent. You will make profit in the end because now you have multiple units in one. Middle-class folks will find these units attractive due to their location and relative affordability. This also means that how much rent you ask for every micro-unit will have a huge impact on the success of your business. So, work closely with a property manager to cash in on this new trend.
