It has been my expierence that condo's on the golf course or with access to golf facilities here in Tucson, Marana have good winter rental records. Six month and short term are booking already for the 08-09 season. Of course you have to consider the summer season which can be slow however the rental rates charged in the winter can offset the lower rental income for the summer months. Please feel free to e-mail me and we can dicuss this further. I own a condo at Starr Pass with golf membership and love to talk about it.
There are more condos for rent right now as many people bought condo investments a few years ago. However, most of those were condo conversions that did not have golf access, or golf close. Many of them are also looking for long term renters and not short term rental possibilites.
We see a demand for golf rentals and condos visiting us on the web, so I feel that in a more specialised condo complex, your rental possibilities would be enhanced. Some HOA's will only allow percentages of rentals and limit the rental time. You may want to check out the CC and R's.
Most of the previous answers below boil down to this: It depends.
Based on your zip code it looks like you're wondering about the Foothills area specifically. Condos near golf-courses will obviously fetch a higher premium and as other posters mentioned you have to be aware of HOA rules/regulations, fees, assessments, etc.
Tucson has a generous year-round golf season and is attractive to those looking for a certain lifestyle. If you would like information about rental statistics for golf community condos or just more general information feel free to shoot me an email.
I am assuming, and my apologies in advance if incorrect, that you are speaking of higher priced condos relevant to high end golf courses.
I don't believe there is a pat answer or guarantee. Depending on what and when you are or have paid for the condo and what rents are commanded in the particular area of purchase, will dictate what rents and returns you will yield or possibly expect.. Is the condo going to be or is in an area of exclusivity for golfers or prime real estate in housing to begin with ?
The down market has surely affected everyone, but less those who are in a position of financial security, regardless of the market . Will you be renting to seasonal visitors to Tucson or permanent residents ?
Please feel free to contact me directly if you wish, that we may discuss, if you like, further your options based on the area and the rents, if any, commanded in the particular area you are looking in or have found already. Thank you, Kat. Sincerely, Lucill Alkabir CRS, ABR , Tucson AZ, Realtor with 20+ yrs negotiation skills in my Clients interests.
Is this a property that you already own, or are thinking of purchasing?
I find that condos are difficult as far as investment properties are concerned. There are so many factors to contend with...if there are other available units for rent in the complex, often times there is price fixing. You can't get more rent out of yours than a property with similar amenities. If you have a mortgage on yours and the other owner for rent doesn't., then he probably can rent his for less than you can.
You must deal with the association and the association fees. What are the rules and restrictions for tenants? What about pets? What about age restrictions? If your tenant is having difficulty adhering to those rules, the association will be the first to contact you (often times on a regular basis).
How much is the association fee? And how much can it go up each year? What about special assessments? Sometimes those monthly fees kill your cash flow. As a landlord you have enough hands in your pocket, you don't need, yet, another one.
If upper level means higher priced, be careful. The higher the price your rent is, the less market available for tenants in those price ranges, thus longer market time. And, tenants in higher priced properties typically don't stay long-they usually buy. Higher priced units mean higher taxes and insurance. And condos typically take longer to sell than houses.
We have a glut of properties for rent in our area right now. Here in Brevard County, condos are typically taking longer to rent, especially high end units.
I prefer single family rental properties. None are close to each other. I don't own any in my own neighborhood. I can rent them for what the market will bear. I stay below a specific rent price ($1200 in our area), otherwise they stay empty longer than lower priced properties- less tenants to choose from. The tenants stay longer in the lower price ranges. They sell faster than condos.
And, yes, if you don't have positive cash flow on it, stay away from it!
When you say upper level condos are you referring to the floor the condo is located on or do you mean higher priced condos?
Regardless, the rule of thumb in real estate investing is make sure that you've got a positive cash flow coming out of the investment. This may mean that you have to plunk down more of a down payment in order to make the numbers work, but it's worth it, unless you can carry a negative cash flow investment. A lot of people have been burned recently by not adhering to the cashflow rule.
If you'd like more information please visit our website at: http://www.ArizonaPremiereLiving.com