Blog Post

Evaluating a 4 Unit as a Rental Income Property

Dustin Edwards • Sep 13, 2022

Evaluation is Key To Understanding Your Rental Income

When purchasing any rental income property there are a few essential items to consider when evaluating it as an investment property. Such as your ROI (return on investment) or NOI (net operating income) among other items.


When speaking specifically about 4 unit properties in Long Beach however, there are some unique aspects compared to duplexes and single family homes. 


Below are a few elements you’ll want to consider when evaluating a 4 unit rental property.



Building Configuration

Like duplexes which are most commonly built symmetrical, 4 unit properties sometimes are also built identical to each other. This isn’t always the case. Having different types of units available for rent allows a varied mix of potential tenants. Studio, single bedroom or 2 bedroom units allows you to cast a wider net to attract single tenants or small families. In some cases if a tenant is happy living in your rental unit when they’re single, they may even want to move to a larger one when they begin to grow their family. Allowing a diverse rental mix can help achieve a nice yield


On Site Features

See if the property has onsite features or amenities like connections for washers and dryers or a communal laundry, air conditioning, and outdoor spaces. 


Tenants love to avoid trips to the laundromat making in-unit laundry a major incentive and convenience. Luckily some tenants have their own washers and dryers meaning just having connections for them is enough. Though it goes without saying that if you can provide each unit with their own washers and dryers it can make your property stand out. If neither of these options are provided if the property has a communal laundry, many tenants will still prefer to carry a load of laundry to the common washer than drive down to the local laundromat.


With the weather being as hot as it's been recently, air conditioning is especially desirable to tenants. HVAC systems are preferable versus window unit air conditioning due to higher efficiency, better curb appeal and longer lifespan.


When looking for rental properties don’t forget to pay attention to the outdoor space. Balconies, porches, and patios give tenants a sense of a larger living space without adding more walls.


Parking

Parking is a feature that is incredibly important for tenants who commute. Off-street parking is more desirable as it guarantees a space even on busy days and can avoid parking tickets. 


You’ll find it’s easier to find a tenant when you include parking in the rent. Depending on available parking, you charge separately for each spot allowing for tenants who don’t drive the opportunity to save some money while tenants with multiple vehicles can pay for additional parking spaces.


Location

The neighborhood in which you purchase your 4 unit property can determine how easily you can attract tenants. Buying near the community college can attract college students which can fill vacancies quickly while at the same time make it difficult to find tenants during summer break


Good quality k-12 schools and parks can attract younger families looking to establish themselves. This can lead to the aforementioned long term tenants that can live in your rental property for years as they grow.


The area where you buy any investment property also affects how much you can charge for rent. Before you invest, be sure to have an idea of how much other units in the area are being rented for.


Finding the right investment property requires a little bit of research, if you need help evaluating a property you are looking at feel free to call us at (562) 888-0247 or feel free to fill out our
free rental analysis to see what your rental could yield today.

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By Dustin Edwards 01 May, 2024
Everyone wants to feel safe in their homes. As an investment property owner, it's up to you to decide whether or not to include security measures in your property. Many of the costs associated with the security measures can be included in the rent, meaning not only can you keep your property safe, but you can earn more income in the long run. However, you would still want your tenants to have renters insurance to protect their assets. Today, we’ll discuss the top five security measures you can add to your property and why they're beneficial to you and your tenant. Security Cameras Cameras are probably one of the first security measures people think about when asked about security. Cameras provide more benefits than just surveillance. They provide an extra level of security for the safety of the tenants and their belongings. Additionally, security cameras can be useful when repairs are required. Cameras can aid in supervising repairs and maintenance to ensure you’re receiving the agreed-upon work. During vacancies when the property is empty, security cameras can help keep the property safe from potential intruders. Doorbell cameras are incredibly popular now. They provide the aforementioned safety of a camera that can be accessed remotely, as well as the ability to communicate with visitors. Although one must be careful never to say you're not home, just say you're unavailable to strangers. Security Lights Security lights with motion detectors are another effective tool when adding security measures to your property. These lights brightly if a potential intruder attempts to get near your home. They can provide enough illumination to see the intruder or, at the very least, scare them off. Nowadays, you can find a combination of security cameras and motion-activated security lights, such as the floodlight cam wired plus from Ring . Additionally, because these lights only turn on when motion is detected, they’re more cost-effective than traditional lights with a switch. Illuminate the Property Light generally deters intruders as it's more difficult to hide. Adding lighting to the landscaping can increase the security of the property while creating a relaxing atmosphere. Lights can also be used in other areas of the property to accent features such as trees, benches, or artwork. This can help your property stand out while giving your tenants an additional feeling of safety. Keyless Entry Keyless entry is seen as both a convenience feature and a security feature. They usually use an electronic passcode, biometric data, or grant access through a smartphone app. Physical keys can be lost, stolen, or duplicated. You reduce the risk of unauthorized entry by eliminating the need for a physical key to enter the property. Many keyless entry systems include several features, such as remote locking and monitoring. Although keyless entry is a great new technology for keeping your tenants and properties safe, they’re best used with other security systems. Security Company Nothing beats having an extra pair of eyes on your property for security. This is where security companies like ADT and SimpliSafe come in. While companies may deal with security in varying ways, they aim to protect your investment. While safety is the primary role of a security company, remember that many tenants may be willing to pay more for a premium amenity like a home security company. Keeping your property and tenants safe is incredibly important to the longevity of an investment property. If you’re looking to improve the security of your Long Beach rental property or need help managing your beach city rental property, we invite you to call us today at (562) 888-0247 or fill out our Owner Application online .
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