San Jose, CA: Rental Property ROI Analysis
|75 US City Avg.
San Jose, located in the heart of Silicon Valley, is known for blending a rich Spanish history and cultural heritage with all of the conveniences and amenities of a world-class metropolitan city. Surrounded by exceptional educational resources, area schools such as the University of California, Berkeley and Stanford University release thousands of engineering and computer science graduates into the community each year. For this reason, it is easy to see why Forbes ranks San Jose No. 7 for Education in the country.
The cost of living in San Jose is among the highest in the nation, and a competitive real estate market leaves thousands of residents looking for rental housing each year. It is easy to understand, then, why All Property Managementâ€™s Q2 2014 Rental Ranking Report places San Jose as the 2nd best market for rental investment in the West, and fifth-best in the nation.
What data is this based on?
To calculate the All Property Management Rental Ranking Report, we explore a number of different sources, including current government housing and jobs data, as well as housing appreciation forecasts for 75 cities across the United States. We look at specific factors such as home vacancy rates, capitalization rates, home value appreciation rates, annual job growth, change in rental rates, and average days a property stays on the market to determine which U.S. cities are poised to give investors the highest return on their rental investment.
San Jose, California ranks well among nearly all of these categories, with the exception of capitalization rate when compared to the 75 Metropolitan Statistical Areas that All Property management evaluates for the Rental Ranking Report. On the other hand, low vacancy rates of 3.2 percent and a â€œdays on marketâ€ value of 30 days (the second-best in the country) shows that the real estate market is quite active, and that there is a demand for rental properties. Strong job growth of 3.85 percent year-over-year and a rental price increase of 2.58 percent over the same time period are also positives for the San Jose rental real estate market.
What does a high-ranking mean?
Is owning a rental property in San Jose profitable?
Quite simply, there has never been a better time to consider rental property investment in San Jose and the surrounding areas. An active real estate market with low vacancy rates tells investors there is a demand for rental housing, while a decent rental rate increase suggests there is income to be made.
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Our team at All Property Management specializes in connecting property owners with property agents in communities across the country. Expert property managers can assist with setting rental rates, advertising your property, screening and managing tenants, collecting rent, managing vendor relationships, and ensuring you are complying with local, state, and federal housing regulations, thus taking the hassle and worry out of managing your property. We look forward to working with you and welcome the opportunity to help you with all your property management needs.