Property developers and landlords are making a solid, long term commitment to the Las Vegas rental market. Several recent sales of lower budget apartment complexes show that savvy investors know what will make money in this market. They understand that the overall population of Las Vegas may be diminishing because of the economic downturn, but there are still people arriving every day, and they need places to live.
What It Means For Las Vegas Rentals
Finding a reasonable Las Vegas apartment has been increasingly difficult for families, who have faced foreclosure, and there is a distinct void between the upper market apartments and affordable ones. Even with renovations, these recently purchased developments have units likely to rent in the $500-700 range, and that’s great news.
Many are properties that were falling into disrepair and whose owners could no longer keep them up properly. A number of Las Vegas rental properties have been purchased. The most recent was the 232 unit Charleston Wood, which followed complexes like Arrow Canyon, which has 426 units.
Keeping Las Vegas Rentals In The Black
For buyers, turning these properties around from negative operating expenses will be a challenge, but a worthy one for both their profit and for the neighborhoods. When complexes fall into disrepair, the area often suffers as well, and fixing up properties that have become eyesores is great for the city in general.
These developers, many of whom are from out of state, are looking at what the building can do in the future but the investments are right now. This helps the overall economy with contractors being hired to do work in the short term, and making affordable and safe housing available over the longer term.
High Risk Las Vegas Rental Properties
These investments are risky business at the moment. Las Vegas property is still in a volatile state and will remain so until the area’s economy does a big turnabout. The long-term commitment by these buyers means they can afford to last out the recession, and in the meanwhile can provide housing in a bracket where safety and maintenance have suffered. Some of the complexes, which have been purchased, were owned by banks and has crept into disrepair. Many also had fairly low occupancy rates as bankers are not necessarily good property managers or leasing agents.
These investors are looking to the future, but for the family on the search for an affordable Las Vegas apartment, there will soon be a much bigger choice than was seen a year ago. Renting condos and single-family homes in distress can come with problems due to no maintenance, and that’s precisely where these units will fill in a big gap. Well kept, maintained and managed properties are what they are all about, and they will serve the market well.
