Those in the real estate industry are always looking for the next big trend. What types of rentals are hot? How can investors make more money on the housing market? In large metropolitan areas, the current trend is micro-apartments. These small spaces – only 250 square feet in area – are one-third of the size of traditional apartments. These are the ideal living spaces for those who are young, single, and require very little living space. Here are some pros and cons for property management companies to consider.
Benefits
Micro-apartments allow for more units – and more income – making them perfect for property management companies. Connecticut property managers will be able to earn more money, even though the rent is lower. How? One regular-sized apartment in the city may bring in $2,700 a month. Compare that to three micro-apartments at $1,600 each. The result is almost double the income for the same amount of space.
Another bonus is that any home can be converted into micro-apartments. For example, you can take a foreclosed home and renovate it to create multiple units. If you have a 2,500 square foot home, you have 10 apartments. The more room, the more opportunity you have to allow gross income to rise exponentially.
Limitations
It is all about location. Micro-apartments cannot be built just anywhere. They will only work in densely populated areas, such as urban neighborhoods. Think San Francisco, New York City, or Chicago. In addition, careful planning needs to be done to make these small spaces functional. Elements such as a bedroom, bathroom, kitchen, and living space will need to be constructed in a smart design. Construction costs to renovate a foreclosed home or run-down apartment complex can quickly add up. Another thing to consider is that more units means more tenants. This can mean more headaches for property management companies.
No matter what type of rental you have, let Real Property Management Hartford Metro help you manage the ins and outs.
