Southeast Michigan is ripe for the investment property picking. With such a diverse area, cities spanning from Birmingham to Detroit, there's plenty to choose from and more than enough people looking to rent from you. All you have to do is find the perfect rental property.
The market here is booming, with houses at some of the lowest prices you'll find across the country. However, with the median household income not being as high as in most urban counties, Southeast Michigan is a place that has more people looking to rent a home than they are buy one. Detroit is, of course, one of the more well-known cities in this region, but the market isn't all that different throughout the other nearby cities are well. We at Renters Warehouse have put together a list of the top five things renters are looking for in a property here in Michigan, so that you'll be better informed when choosing an investment property.
- Safety and Security – Crime rates in Detroit and the surrounding areas are higher than in most other places in the state. However, those that live here are well aware of the fact and are looking to mitigate it by choosing a rental home that feels safe and secure. When buying a place you intend to rent, make sure to look for one in a well lit neighborhood, a house with plenty of locks on the doors and windows, and an area that doesn't look sketchy. The safer the home feels, the easier it is to rent.
- School District – Many renters in our area are families with children. Said families are looking for the best schools to send their kids to. Do some research and find the best school districts and the schools within them, and then buy a house in those areas. People are willing to pay more for a location that they truly want as well.
- Appliances Included – When buying, it goes without saying that finding a home with appliances included will save you money. This also applies to renting, and as such will appeal more to renters. Always try to have a home with appliances included, and if you can find one on the market it will save you some extra cash in the long run.
- Location – Whether you're a student going to university, a hard working employee of a company, or a housewife looking to go shopping, no one likes driving miles and miles to get to where they need to go. Keep in mind the people you're catering to when you buy your investment property and try to buy near where those said people are going to be travelling. Generally speaking, the closer to business parks and schools you are, the easier it is to rent your property.
- Cost – The average two-bedroom rental in Detroit goes for around $1,000 a month. You'll want to keep your prices competitive while still making a profit, so be sure to buy within a budget. In this area it's easy to find a cheap house, but you'll need to remember that upkeep is part of the price. Sometimes going with a fixer-upper can leave you with a house that is more of a money pit than it is a profit maker. You can find out more about the rental trends in our area by following this link.
When buying a rental property, keep in mind your select demographic. Families with children are going to be looking for different things than a single student or young adult is looking for. However, with that in mind, the above items are generally universal to all renters in the Southeast Michigan area. If you're looking for a more in-depth guide to choosing your next rental property, follow this link. If you have any questions regarding purchasing an investment property in our area, feel free to contact us. We're always willing to help.