Why Should I Purchase a Rental Property in Irvine, CA
Does it make sense to invest in a rental property in Irvine, CA? It is important to look at the demographics, statistics, and trends for the area to see if they match your investment strategy. Having a local Irvine, CA property manager as your partner is an advantage when it comes to knowing you are making sound decisions based on solid, current data.
When deciding if this area is a good fit for you, you want to look at the trends.
- Is the city growing?
- Are the rent ranges going up or down?
- Are the home prices going up or down?
- Are more jobs coming in or leaving?
Look for signs of a healthy, growing city with a thriving, diverse economy. It is also important to consider seasonality when deciding your rental property investing strategy. You should consider the busy summer season vs. later in the year such as during the fall when routine maintenance checks are likely to occur. If you are purchasing during either of these times of year, your strategy and planning might change slightly. Let’s take a look at some demographic and statistical information about the area.
About Irvine, CA
Irvine, CA offers suburban living near the Pacific coast. With easy access to all major freeways and highways, it is a desirable location for commuters. One of the largest master-planned communities in the country, the city is very family-oriented and boasts having some of the best schools in the country.
- 3 Million population
- A+ rated schools - #5 in cities with Best Public Schools in America (Niche.com)
- Average age of 34
- Great area for families
- Highly educated population - 69% have bachelor’s degree or higher
- Median household income: $101,667 almost twice the national average
- Cost of living: 187.1 (US average is 100)
- Recognized as “America’s Safest Big City” 15 years in a row by the FBI
Real estate market in Irvine CA
- Median home price $851,000
- 46% Owner occupied
- Homes sell just under list price and typically go pending in about 34 days.
The prices for homes in Irvine is on the high side, but you can find some homes significantly under the average in neighborhoods like Oak Creek. In recent years, single-family home rentals are the property type most in demand. A good property manager that knows the area can help you determine the best areas in Irvine for rentals.
- Median rent price $3,500
- 54% Renter Occupied
- Single family rentals have grown 30% in the last 3 years
Due to the high price of real estate, you are mostly likely not going to get cash flow out of your property. You will be looking to make your money in appreciation.
There will always be a demand for rental properties in the area since the high real estate prices keep most from buying a home. Rental rates are lower than in the nearby towns on the Pacific shore. There is also a large student population from local universities and colleges such as UC Irvine that are looking for rental properties close to campus.
Economy and industry
- Unemployment is less than 3 percent
- .6% Recent job growth
- 40.18% future job growth expected
Irvine’s diverse industries include:
- Educational Services
- Professional, Scientific, and Technical Services
- Finance& Insurance
Irvine has many high-earning jobs available in the area from over 100 global corporations. The low employment rate and high salaries tell you that this area has renters that can afford to pay rent, so you have a quality renter pool to choose from.
Is Irvine, CA right for you as an investor?
Irvine is a great area for investors looking for appreciation. Demand for homes and rentals will continue to grow due to its location, diverse industries, and quality education opportunities,
Having a relationship with an Irvine property manager can be a real asset. At Mynd property management, we have access to proprietary date to help you decide if the Irvine area fits your strategy. If this isn’t the right market for you, we have offices in over 19 markets across the country, and we can help you find an investment property that fits your investment criteria.
Why should I hire a property management company in Irvine, CA
Does it make sense to hire an Irvine property management company?
While self-managing a property, it might seem like there isn’t much todo until something goes wrong. There are a lot of laws, rules and regulations that protect tenants’ rights.
Purchasing a rental property is just the first step. You have your four walls and a roof, but inside is the business operation that determines your success as an investor.
After purchasing the rental property, you must:
- Get the property rent ready – This includes making sure that it complies with any Property Code or laws that ensure the tenant’s safety.
- Market the property – You will need to take professional photos of the property and list it for rent in multiple places to reach the most potential tenants.
- Show the property
- Screen applicants - Again there are rules and laws like Fair Housing that must be complied with during this process. There are questions you cannot ask on an application, so you will need to know that your application process complies with the law. You should have a written policy and procedure for the application process.
- Lease signing – The tenant needs to sign all the proper documentation.
- Move in process – Make sure the home is safe and habitable for the tenant. Not only is this to comply with applicable laws but to offer good customer service.
- Move out process – When you have a tenant move out, there is a security deposit disposition to be completed. This is the number one reasons landlords find themselves in a lawsuit because there are rules and regulations that go along with this step.
An Irvine property management company will take care of all these tasks while ensuring you comply with laws and regulations. You could research the local, state, and Federal laws yourself, but do you have the time or desire to keep up with the ever-changing requirements? How much is your time worth to you? What if you miss one and find yourself in court owing thousands in fines?
Your property management company acts as the operating system for your investment business. At Mynd, we offer cost-effective, three-tiered, flat-fee pricing so you can pick the service level that fits your needs.
Whether you are adding to your investment portfolio or looking for property management in Irvine, Mynd can help. Contact us today, and we can help you decide what the best strategy is for you. We offer a FREE rental analysis of your current property.
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