When the time is right to obtain Davenport investment property, one of the most critical choices you will make is whether to purchase a property in an established neighborhood or a home in a common interest community. There are lots of different kinds of neighborhoods, some with owner’s associations (commonly known as HOAs), some without. A master-planned community, on the other hand, is not your usual residential neighborhood, even if it does have an owners association.
To know whether investing in a planned community is right for you, it’s important first to understand what makes a master-planned community so different, as well as the pros and cons of buying one.
The Master-Planned Community
Perhaps the most important thing to understand about master-planned communities is that they are less like residential neighborhoods or suburbs and more like little self-contained cities. Most planned communities are quite extensive and include commercial districts, schools, and private recreational amenities. Many planned communities offer a variety of shops and restaurants and walking trails, community pools, and even golf courses – all located at a convenient distance from the community’s residences.
Advantages of Planned Communities
One of the most significant advantages of investing in a rental property in a planned community is the location. People buy 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 enticing.
The amenities that most planned communities offer are another major factor. Many tenants like the concept of living a lifestyle that includes access to recreational opportunities – mostly if the amenities are only for the use of the residents. These amenities may provide an opportunity for socializing than a conventional neighborhood.
Another great benefit of a planned community that investors might like is that most are geared toward protecting your property values. In numerous 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 working well elsewhere. Planned communities also tend to offer more security, including gates and security patrols. This can be highly appealing for many tenants.
On the other side, all that upkeep and security comes with very strict rules, which some Davenport property managers and tenants may not agree with. Property maintenance will be a much higher priority in a planned community than in a more typical residential neighborhood, and you will have less opportunity to select 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 indulging in any of these things 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 may strain relations with neighbors. There is also a high rate of people doing activities outdoors, so crowding is always possible. Some tenants may not prefer being around people all the time.
Lastly, 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, you need to include these extra fees into your calculations before you buy in a planned community.
In the end, the decision to invest in a master-planned community is entirely yours. No two instances are the same, and 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’d like assistance planning your next property investment, consider giving Real Property Management Lakeside a call. Our rental market experts can offer market assessments and tools that can make finding and choosing your next investment property easier. You can contact us online or call 863-877-1078.
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