When the opportunity arrives to acquire Twinsburg investment property, one of the most significant decisions you will make is picking a property in an established neighborhood or a home in a common interest community. There are numerous different kinds of neighborhoods, some with owner’s associations (commonly known as HOAs), others without. But a master-planned community is quite diverse from your regular residential neighborhood, even those that may have an owners association.
To identify whether investing in a planned community is right for you, you need first to recognize what makes a master-planned community so different, as well as the pros and cons of buying one.
The Master-Planned Community
Possibly the most significant factor to note about master-planned communities is that they are less like residential neighborhoods or suburbs and more like little self-contained cities. Several planned communities are pretty spacious and incorporate commercial districts, schools, and private recreational amenities. Many planned communities suggest a number of stores and eateries and walking ways, community pools, and even golf courses – all located at a convenient distance from the community’s residences.
Advantages of Planned Communities
One of the vital advantages of investing in a rental property in a planned community is the location. People purchase in planned communities in large part because of how close and accessible everything is. Walking or biking to jobs, shopping centers, and restaurants might be an interesting concept.
The amenities that many planned communities offer are another huge bonus. Numerous tenants love the thought of living a lifestyle that includes access to recreational opportunities – primarily if the amenities are only for the use of the residents. These amenities can build opportunities for socializing far more than a common neighborhood might.
Another significant benefit of a planned community that investors might like is that most are geared toward protecting your property values. In various planned communities, the common areas are well-maintained, and some even offer front yard maintenance for residences. This can help keep your property values high, even if the rental market isn’t performing great elsewhere. Planned communities also tend to offer more security, including gates and security patrols. This can be very appealing for many tenants.
Potential Drawbacks
Alternatively, all that upkeep and security comes with very strict rules, which some Twinsburg property managers and tenants may not appreciate. Property maintenance will be a much higher priority in a planned community than in a more typical residential neighborhood, and you will have less independence to pick landscaping styles, paint colors, and even if and how to decorate the home for holidays. You and your renters may need to get permission before performing any of these exercises as well.
Another potential drawback is that there tends to be less privacy in a planned community. Houses are often built very close together, which can strain relations with neighbors. There is also a high rate of people doing activities outdoors, so crowding is always a probability. Some tenants may not enjoy being around people all the time.
After all, the downside to all the extra upkeep and great amenities you get in a planned community is that it all costs money. Depending on the community, property owners may be expected to pay extra fees that range from several hundred to thousands of dollars each year. Depending on the property you purchase, you may even have an obligation to pay assessments to two or more sub-associations along with the master association. These assessments may also change as the community grows, maintenance becomes more expensive, or as reserve amounts are needed. As an investor, it’s essential to include these extra fees into your calculations before you buy in a planned community.
Lastly, the decision to buy in a master-planned community is up to you. No two conditions are the same, so depending on where you want to buy an investment property and what type of tenant you’d prefer to work with may factor strongly into your decision.
If you need help planning your next property investment, consider giving Real Property Management Valor Team a call. Our rental market experts can give market assessments and tools that can make finding and choosing your next investment property easier. You can contact us online or call 440-534-6700.
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