Why Should I Purchase a Rental Property in Redmond, WA
If you are thinking about purchasing rental property in Redmond, WA, your first step is to research the area. Making a smart, informed decision starts by looking at the right data and having an experienced property manager as a part of your team.
What kind of return do you want from your Redmond investment property?
Define your strategy and goals before you start looking for a property. Are you looking for monthly cash flow, appreciation, or both? The next step is to determine if the market fits your strategy by looking at data like real estate trends, city growth, and more. Let’s take a look at the Redmond, WA area and why it is a good place to invest.
About Redmond, WA
Redmond, WA is part of the Seattle metropolitan area but has a smaller city, suburban feel. Known for its high quality of life, Redmond offers high quality schools, healthy economic climate, beautiful parks, excellent public transportation system, and convenience to 520 and I405. Known as a bicycle friendly community, it is common to see residents walking or biking to work.
Thanks to the best public transportation system in the country, you can be in downtown Seattle in about 20-30 minutes. Microsoft's headquarters employs a large percentage of the city at its sprawling 502-acre campus. There is an upper middle class, highly-educated population in Redmond.
- 67,678 population
- Average age 34
- $123,000 median household income (twice the national average)
- Forecasted to grow significantly by 2030
- Highly ranked schools
- Cost of living is high but the area has numerous high paying jobs
- 2.64% unemployment
Industry and the Economy
Redmond is best known as the home of Microsoft headquarters which is the largest employer in the city. Other large companies in the area include Nintendo and AT&T. These companies contribute to Redmond's strong, stable economy. Most jobs in the area are in the professional/scientific/technical services, retail, and manufacturing industries.
Redmond real estate
- $897,793 median house value – higher than metro Seattle-Bellevue
- 5.1% appreciation
- Average age of homes is 25 years old
Real estate prices in Redmond are high, so investors would be looking for appreciation rather than cash flow in this area. If that is part of your strategy, then you may want to explore the available investment opportunities.
- Grass Lawn – close to Microsoft
- Education Hill – close to Microsoft
- Idylwood – by Lake Sammamsih
If you are looking to invest in the area, find and connect with a Redmond property management company first. They can provide you with valuable advice and insight to the rental market. Mynd has access to proprietary data that can give you the accurate numbers to base your decision on when it comes to purchasing rental property.
If you are looking for cash flow and Redmond doesn’t work with your investment strategy, Mynd can help you find a market that does. Mynd has offices in 19 investable markets. As a valuable member of your team, Mynd can help you make smart investment decisions as you expand your portfolio.
How to Accurately Set Rent for my Redmond, WA Rental Property
The market determines the rent rate
As an investor you want to set the rent rate at a level that is going to maximize your return while also reducing vacancy time. It is important to look at several factors that can affect what rent you can expect to collect. What are the trends in the area?
Your Redmond property manager can answer questions like:
- Is the city growing?
- Are rents going up or down?
- What is the average eviction rate?
- What are the days on market?
Why are these statistics important? If days on market are typically 60 days, you need to know you can sustain that gap financially. This is more critical in an area like Redmond where real estate prices are high. Knowing the answers to these questions before you even purchase the property is key to your success as an investor. A Redmond property manager has access to this information and can offer advise before and after you purchase your rental property.
Redmond rental market
- $2,480 average rent for 2-bedroom home
- $3,570 average rent for 3-bedroom home
- 46% renter occupied
Due to the high cost of owning real estate and tech employee’s tendency to move every few years, Redmond has a large percentage of renters in the area. As an investor, you have a pool of quality potential renters that have high-paying jobs and can afford more expensive rent. Location and convenience to the Microsoft campus is a plus for a rental property and can command a higher price. Many employees prefer to live close enough to walk or bike to work.
Why Should I Hire a Property Management Company in Redmond, WA
Owning a rental property requires handling day to day operations and staying up to date on ever-changing laws. Should you continue to do this yourself or does it make sense to hire a Redmond property management company?
When you got started in investing, you probably did it for a secure retirement in the future. However, you may not have realized the amount of time that was involved in managing it yourself. Once you own more than one property, the time required continues to increase. You thought you were gaining free time and ended up adding a second job.
The operations that take place in managing your rental make or break your success as an investor.
A property manager can be a valuable addition to your team and help you maximize your return. They take care of the daily operations of your rental such as:
- Getting a property rent ready
- Marketing the property
- Screening applications
- Lease signing and enforcement
- Maintenance - preventative and emergency repair
- Collecting rent
- Eviction procedures if ever necessary
- Lease renewals
Laws and Regulations
As a landlord, you must follow Federal, state, and local Property Codes that dictate how a property must be maintained. Almost every task involved in owning rental property is covered by one or more laws. For example, there are things you can’t ask on an application or during the screening process.
If you are self-managing your property, you are responsible for keeping up with current laws, rules, and regulations. If you must evict a tenant, there may be new laws in place that limit if or how you can do that. Some laws protect owners and others protect tenants.
Rules and Regulations examples that apply to Redmond rentals
- Required landlord disclosures in WA
- WA security deposit limit and return
- Tenants rights to withhold rent in WA
- WA Termination and eviction rules
- Seattle’s noise code
- WA laws that prohibit landlord retaliation
- Laws for support animals
It can be overwhelming to keep up with all the laws you have to comply with. How much is your time worth? Hiring a property manager can give you the peace of mind that your tenant is safe, your property is cared for, and you comply with the laws that apply.
Maintenance Issues in your Redmond rental
Your property manager takes care of maintenance issues that come up including those late-night emergencies. The property must be maintained in compliance with property code. When a repair needs to be done, a property management company has quality vendors available to do the work. This is especially important when you are an out-of-town landlord for peace of mind that your property is being cared for.
Contact us today at Mynd about property management in Redmond or if you need help finding your next investment property in one of the 19 markets we serve. Mynd offers three tier pricing so you can select the level of management you need.
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