How to choose a rental property location in Los Angeles?
When choosing a rental property location in Los Angeles, consider neighborhoods, crime rates, neighborhood trends, and of course, rents vs. price.Choosing a rental property location in Los Angeles, requires not only a full examination of neighborhoods for livability and amenities, but also, a very thorough analysis of potential rents for any given property, as well as potential likely expenses. It is very hard if not bordering on impossible, in Los Angeles or surrounding areas, to buy a “cash flowing” property. But in the right neighborhood and the right situation, an investor can still do well. Caveat/Spoiler alert: “Doing Well” usually means that the rents cover the monthly payments, or come close to doing so. The idea that a property will cash flow when you first buy it, is not realistic- cash flow does not tend to happen till you have owned the property a few years.
Regardless, evaluation of neighborhoods and rents is absolutely crucial if a buyer is looking for an investment property. Big Town Real Estate specializes in helping its clients find properties which are not only great places to live, but also great investments. Examples include, Duplexes / Triplexes where the buyer lives in one and rents the other(s), a house with a large garage that can be turned into an ADU, Homes with unpermitted units, attic or basement apartments, etc. The list goes on. BTRE loves nothing more than helping clients get the most bang for their buck.
Close to employment
To choose a property in Los Angeles close to employment, consider neighborhoods with strong job markets. To choose a property in Los Angeles close to employment, per Ally Gong of Doorstead, consider proximity to major employers. We, at Big town real estate, advise our clients to invest in rental markets that are near to major employment centers. Here are some options that Property owners can consider depending on their goals:
- Santa Monica:
Santa Monica is desirable for its tech companies, high demand, and higher rental rates. The average monthly rent for a 1-bedroom apartment in Santa Monica is $2995. It is also near the beach and beach living always commands premium rents and sales prices.
2. Westwood:
Westwood is ideal due to UCLA and nearby affluent neighborhoods. The average rental rates in Westwood are about $3300.
3. Culver City:
Culver City attracts young professionals with its central location and employers like Sony Pictures.
4. Mar Vista:
Mar Vista is near tech companies in Silicon Beach and the entertainment industry in Culver City.
5. Northeast LA (Highland Park, Eagle Rock, Glassell Park, Atwater, Elysian Valley):
NELA has tons of cool coffee places, hip/cool restaurants, bars, music venues, art galleries, vintage stores, etc. NELA is the “up and coming” part of the city, where the “young and the restless” love to move. But of course, the young and the restless get older, and settle down, and usually they buy property where they like to live- which is NELA. NELA property values have skyrocketed over recent years.
6. Hollywood Hills, Los Feliz, Silver Lake:
These areas are the more upscale parts of the eastern end of Los Angeles. Many actors live in the Hollywood Hills, and the houses can be big, have views, and be very upscale. However, it is still cheaper than the west side areas (like Brentwood, Beverly Hills, etc.) but many may argue, equally nice. The same goes for Los Feliz and Silverlake. Equally nice to parts of the west side, but generally less expensive. (West-siders may argue that these areas are not equal to west-side areas, but we disagree. We are east-siders for life!)
7. Glendale, Pasadena, La Canada Flintridge:
These are locales which are north and east of Los Angeles proper, with Pasadena and La Canada being fairly far north, and Glendale being just north of North East LA. These areas have very nice properties, and Glendale has Blue Ribbon Schools, making it highly desirable for families. And again, in these areas, particularly Glendale, you can get a lot of bang for your buck, and the neighborhoods are just as nice as some much more pricey places.
Ideal for Families
To choose a location in Los Angeles ideal for families, many locations can be considered. To choose a location in Los Angeles ideal for families, take a look at the best school districts. The Mount Washington School district is one of the most desirable (NorthEast LA), as is the Glendale School District. In our experience at Big town real estate, investing in places with prime school districts, almost always pays off, as those areas tend to experience the best appreciation, and, they stand up the best when the market starts downturning. Low crime is also a necessity, if you are looking for a family friendly neighborhood.
Close to Schools
To choose rental properties close to schools in Los Angeles, start by focusing on popular student neighborhoods. To choose rental properties close to schools, per an article of StudentRoomStay: A quick guide to student housing in Los Angeles, consider Westwood, West Los Angeles. These areas offer convenient access to educational institutions like UCLA. These areas also offer a variety of amenities including dining, shopping, and entertainment. At Big town real estate, we help real estate investors to invest in desirable locations.
Crime rate
Crime rate is an important parameter that should be considered while choosing rental properties in Los Angeles. To choose rental properties with low crime rates in Los Angeles, focus on safe neighborhoods. It is important to choose active neighborhood watch programs. Here are some stats that can help investors to choose the location wisely:
- Pacific Palisades has a crime rate of 99 per 100k people
- Manhattan Beach has a crime rate of 131 per 100k people.
- Westwood has a crime rate of 127 violent crimes per 100k people.
- Glendale has a crime rate of 154 per 100k people
- Pasadena has a crime rate of 386 per 100k people.
Relative crime rates are a metric that investors should consider.
Access to Public transit
To Choose a location with Access to public transit, consider a location with high percentages of transit riders. To Choose a location with Access to public transit, per Juan Lopez of myneighborhooddata, consider Westlake, Pico-Union, and Mid-City. These neighborhoods have high percentages of transit riders and lower median home prices. In areas like this- which are NOT family friendly- investors should look for multi unit type of investments, 1-2 bedroom units, perhaps 3 or 4 plexes. Younger people, perhaps with roomates, would live in places like this. These can also be great investments. Family type of homes/larger units in the mid-city areas would not command the types of rents that such places would get in better areas, with better schools and less crime. At the risk of making mid city people mad at us, mid-city is not the ideal place for families.
Amenities
To choose a rental property location in Los Angeles with amenities, consider both apartment features and neighborhood amenities. Amenities include buildings with pools, BBQ areas, pet amenities, and on-site laundry facilities, according to Veronica Grecu of RentCafe. Secure parking, roof decks, package lockers, and smart home technology are other amenities loved by renters. Evaluate amenities within the property and nearby conveniences.
Commuting
To choose a rental property in Los Angeles with the best commuting options, focus on accessibility. To choose a location with the best commuting options consider neighborhoods near major highways. It is important to consider public transit, and convenient transportation routes for easy commutes. Properties close to schools, parks, shopping, and amenities can enhance quality of life. High rental demand neighborhoods near transit hubs and employment centers attract tenants and ensure high rents.
Ideal neighborhood
To choose a rental location in Los Angeles, consider your budget and lifestyle preferences. An ideal neighborhood in Los Angeles combines affordability, and amenities, per Stephanie Brail of RentBlog.
Walk score
To choose a rental property in Los Angeles with a high walk score, consider neighborhoods’ amenities. To choose a rental property with a high walk score, per Devyn Rheuby of LA DIGS, consider Hollywood and Downtown LA. These neighborhoods offer high walk scores, ranging from 69 to 95, with numerous nearby amenities. Shops, restaurants, parks, and entertainment venues are within walking distance in these areas. Hollywood and Downtown LA have bustling streets and proximity to attractions. Santa Monica and Venice offer scenic walks and family-friendly environments.
Price range
To choose a location in Los Angeles with an ideal price range, consider budget-friendly areas. Areas with Ideal price range include, as per article of Cost U Less: 5 of Los Angeles’s Most Budget-Friendly Areas for Rentals, Encino, East Hollywood, and Sawtelle. Each offers affordable options and amenities. These areas cater to different lifestyles, from family-friendly parks to vibrant dining and culture. Living close to work reduces transportation costs.
Pets allowed
To choose a rental property in Los Angeles that allows pets, start by searching pet-friendly listings. To choose a rental property in Los Angeles that allows pets, per Tara Paniogue of Los Angeles Times, do ample research. It is important to understand that pet-friendly housing can offer additional benefits like higher occupancy rates. Here are some tips that tenants and landlords should follow to avoid any inconvenience in the future:
- Crafting a pet resume that includes qualities and training.
- Getting awareness of allowed pet breeds in the area
Parking
Parking is an important thing, and oftentimes, investors neglect to check out parking situation,s or underestimate the knock on value a bad parking situation will create. The reality is, any property that does not have at least 1 space per unit, is going to be worth less than market value as a result of this. If street parking is a necessity at a property, investors are highly advised to see what the parking situation is like. In some neighborhoods, it is no problem at all, and in other neighborhoods, tenants will be parking blocks away, or spending an hour driving around and still not finding a space. This will devalue your investment. At Big town real estate, we advise our clients to make their initial investment in the rental housing markets. These dwelling units help to gain potential tenants.
For more information contact Big Town Real Estate Team Today us!
Richard Evanns has experienced in both the acquisitions, operations, and law surrounding short term rentals, mid-term rentals, and long term rental properties in Los Angeles and surrounding markets, from Joshua Tree to Yosemite.