One of the most popular terms in real estate is location. It has proven to be an important aspect for any real estate investment. So how does it apply to apartment buildings and how can you determine whether an investment property is in a good location?
The key component for rental properties and apartment buildings is rental demand. To understand the demand of a location, we carefully analyze the following factors and incorporate these variables into our underwriting:
We scan the community for similar buildings and units that are currently being rented. Rent comps are the biggest contributor to quantify the value of a submarket, because they demonstrate what tenants are willing to pay to live in that area, for comparable units.
Higher employment rates in a specific location will increase demand for rental properties. We research what companies move in and out of neighborhoods to better understand the potential inflow and outflow of renters.
Los Angeles has attracted many people because of the energetic nightlife, retail shops, popular restaurants and cafes. Most renters will be more driven to rent in areas that are more conveniently located for ease of access to these venues.
Contact us anytime to learn more about TGG and its Los Angeles real estate investments!